NVIDIA Forced To Pay $119.1 Million For Faulty Die And Weak Packaging

Posted Aug 10, 2009

NVIDIA has spent $119.1 million around the last 4 months to fix faulty die and weak packaging that was used in graphic chips.  This is the second time NVIDIA has had to spend money over a similar problem.  NVIDIA spent $196 million to cover warranty and product replacement.

Last July, the problems were first reported.  NVIDIA chips were overheating due to weak packaging materials.  Then there was a problem with soldering chips.  The chips are used by Dell, HP, and Apple.  NVIDIA has to change the BIOS settings for laptops to run fans continuously and had to replace PCCs that were failing due to faulty chips.

[via Engadget/The Inquirer]