IE 131 - Downloads February 1, 2011+: Chip Defect Could...

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Downloads February 1, 2011+: Chip Defect Could Cost Intel $1 Billion To Fix. This is a huge embarrassment The Guardian (UK) (2/1, Arthur) reports, "The chipmaker Intel has halted shipments of its new 'Sandy Bridge' processors and says it will have to spend a total of $1bn (£600m) fixing a fault, delaying hundreds of new PC models for up to three months and potentially stifling growth in the personal computer market." The fault was not with the processor itself, but with part of the larger chipset. "Flaws in [the] support chip, called Cougar Point. ..would have led to failures over time in connections to hard drives and DVDs," the company said. Reuters (2/1) reports that this comes at a critical time for the company, which is seeing a slowdown in the PC market and a rise in mobile technology, where its chips are not dominant. "Does it change the perception of Intel's quality? Yes, probably. You've got real product out there that's been qualified and tested and green-lighted, and then you come back to say there's a problem and you have to recall," one analyst said. According to an official, the problem would have extended to about five percent of computers using the chipsets, causing "a low and continuing failure rate over the life of the systems." The New York Times (2/1, B8, Kopytoff) reports, "Computers with the flawed chip, which is for use with second-generation I5 and I7 quad core processors, started shipping on Jan. 9. By the time Intel identified the flaw and stopped production, it had already shipped eight million chipsets, not all of which had been placed in new computers." The company said "a modified version of the chipset will start shipping late this month," and "full production is expected" to resume in April. "I think Intel is being safe rather than sorry," said analyst Craig Berger. "They're doing the right thing, rather than have customer problems down the road." The AP (2/1) reports, "Despite the setback, Intel raised its overall revenue outlook for the first quarter because of the recent acquisition of the phone-chip business of Infineon Technologies AG. It also expects to complete the acquisition of McAfee by the end of the first quarter." Bloomberg News (2/1, King, Sherman), the Wall Street Journal (2/1, Clark, Tibken) and the Financial Times (2/1, Nuttall) also report the story. US Businesses Expand At Fastest Rate Since 1988. A corner is obviously being turned, jobs later? Bloomberg News (2/1, Kowalski) reports, "Businesses in the US expanded in January at the fastest pace since July 1988, indicating the world's largest economy has momentum at the start of the year. The Institute for Supply Management-Chicago Inc. said today its business barometer rose this month to 68.8 from 66.8 in December." The expansion of "orders, production and employment" came "as manufacturers such as Caterpillar Inc. benefited from a pickup in consumer purchases and stronger export markets in emerging economies such as China. Consumer purchases in the final three months of 2010 were the
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This note was uploaded on 02/07/2011 for the course IE 131 taught by Professor Groover during the Spring '08 term at Lehigh University .

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IE 131 - Downloads February 1, 2011+: Chip Defect Could...

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