Design Flaw in Intel's Chipset Impacts PCs

Semiconductor giant Intel Corp. has discovered a design flaw in a recently released support chip, the Intel (News - Alert) 6 Series, code-named Cougar Point. The company has implemented a silicon fix.

According to Intel, the serial-ATA (SATA) ports within the chipsets may degrade over time, potentially impacting the performance or functionality of SATA-linked devices such as hard disk drives and DVD-drives. The chipset is utilized in PCs with Intel's latest second generation core processors, code-named Sandy Bridge. Intel has stopped shipment of the affected support chip from its factories.

Intel said that it has corrected the design issue, and has begun manufacturing a new version of the support chip which will resolve the issue. The Sandy Bridge microprocessor is unaffected and no other products are affected by this issue, the supplier assured.

The company expects to begin delivering the updated version of the chipset to customers in late February and expects full volume recovery in April

Intel said that for computer makers and other customers that have bought potentially affected chipsets or systems, the company 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. The systems with the affected support chips have only been shipping since January 9 and the company believes that relatively few consumers are impacted by this issue.

Total cost to repair and replace affected materials and systems in the market is estimated to be $700 million. Since this issue affected some of the chipset units shipped and produced in the fourth quarter of 2010, the company will take a charge against cost of goods sold, which is expected to reduce the fourth quarter gross margin percentage by approximately four percentage points from the previously reported 67.5 percent. 

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