February 2, 2011

Samsung Will Issue Refunds For Intel Chip Flaw

Samsung Electronics said Tuesday it would issue refunds to all customers who had purchased its personal computers built with a flawed chipset from microprocessor maker Intel Corp.

The announcement comes after Intel said it had discovered a design flaw in its new line of Sandy Bridge microchips and had sent out around 100,000 of the faulty chipsets before making the discovery.

Intel said the problem is expected to cost the company $1 billion in repairs and lost revenue, while delaying the release of computers using the new microprocessors.

"There are six PC line-ups released in Korea and one in the US, and we plan to fully refund or exchange the product in question," Samsung spokesman James Chung told AFP.

Intel said Monday that its chipset that connects the Sandy Bridge processors to other parts of the PC system had a problem that could potentially cause hard-disk and DVD drives to malfunction.

Samsung said there would be no financial impact on its business because the total refund payments will come from Intel.


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