Intel hit by $1 billion USD design glitch
by Steven Mostyn - Feb 1 2011, 04:42
Sandy Bridge in Greenup County, Kentucky. Wow, that's a big chipset. Image: dok1/Flickr.
Chipmaker Intel Corp. is facing a gargantuan financial setback following news of a potentially damaging design flaw connected to its latest ‘Sandy Bridge’ processing platform.
More pointedly, the tech giant expects to lose around $1 billion USD in sales and expenses, which equates to $300 million USD in adjusted first-quarter revenue and $700 million USD in replacement chipsets.
The technical problem is apparently linked to the 6 Series chipset (a.k.a. Cougar Point) supporting Intel’s second-generation Core processors, and can cause degradation through serial-ATA or SATA ports if left unchecked.
According to the Santa Clara-based company, it has rectified the flaw and manufacturing of the revised platform is already underway.
“For computer makers and other Intel customers that have bought potentially affected chipsets or systems, Intel will work with its OEM partners to accept the return of the affected chipsets, and plans to support modifications or replacements needed on motherboards or systems,” Intel outlined via an explanatory statement.
Speaking in a San Francisco Chronicles report, an Intel representative said the company expects to have Sandy Bridge back on track by the beginning of 2011’s second quarter.
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