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Nvidia Corp. shelled out $196 million which covers the cost of replacing bad graphics chips used in a range of laptop models from different manufacturers.
The company claims that the replacement of the chips was not a necessity and that they just wanted to ensure perfect product quality. However, the large amount budgeted for the replacement suggests the opposite. Some analysts believe there is a highly significant problem on the chips that Nvidia needed to pay for such a huge amount.
Jen-Hsun Huan, Nvidia’s chairman and CEO, said that repair costs were one of the reasons why the warranty charge reached to millions of dollars. The company’s estimate was $150 million to $200 million.
Nvidia first revealed the chip problem in early July. Some graphic processors used in laptops have failed due to weak silicon dies and packaging materials that were used in the chips.
