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Chipset design flaw to cost Intel $700m

Intel expects to spend $700m (£437m) repairing and replacing a design flaw discovered in its Intel 6 series chipset, code-named Cougar Point

Intel expects to spend $700m (£437m) repairing and replacing a design flaw discovered in its Intel 6 series chipset, code-named Cougar Point.

The company said in a statement it has implemented a silicon fix and will roll-out updated versions of the chipset to customers in late February. Intel anticipated "relatively few" customers will be affected.

But Intel was forced to lower its sales forecast by $300m (£187m) for the first quarter of 2011 as the company stopped shipments and began manufacturing the new version.

The chipset is utilised in PCs with Intel's latest Second Generation Intel Core processors, code-named Sandy Bridge. However, the Sandy Bridge microprocessor is unaffected.

"In some cases, 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 statement said.

Intel said it is working with partners to ensure computer makers and other Intel customers with affected chipsets or systems receive replacements needed on motherboards or systems.

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