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Lawsuit Claims Nvidia Execs Concealed Serious Flaw

snydeq writes "A lawsuit filed in a California court on Tuesday alleges Nvidia concealed the existence of a serious defect in its graphics-chip line for at least eight months 'in a series of false and misleading statements made to the investing public.' The lawsuit contends that Nvidia CEO Jen-Hsun Huang and CFO Marvin Burkett knew as early as November 2007 about a flaw that exists in the packaging used with some of the company's graphics chips that caused them to fail at unusually high rates. Nvidia publicly acknowledged the flaw on July 2, when it announced plans to take a one-time charge of up to $200 million to cover warranty costs related to the problem. That announcement caused Nvidia's stock price to fall by 31 percent to $12.98 and reduced the company's market capitalization by $3 billion, the lawsuit said. The lawsuit seeks class-action status against Nvidia and unspecified damages."

6 of 219 comments (clear)

  1. Re:Again? by Anonymous Coward · · Score: 4, Funny

    "Frankly, this whole fiasco just strengthened my love for ATI. Their newer binary blobs are amazing."

    Quick! Someone frame the above. I never thought I'd see the day when someone said something nice about ATI drivers.

  2. Re:Curious to see where this one goes... by Anonymous Coward · · Score: 1, Funny

    sign up

    you'll probably end up getting a coupon for a free software widget that lets you adjust the contrast settings from the system tray

    the lawyers, on the other hand, will be getting $70M

  3. Re:Seriously, what is the issue with Nvidia chips? by Lumpy · · Score: 4, Funny

    Nope, it seems that the cardboard box they were shipped in contain a high level of a rare Iridium isotope that causes molecular decay of the technology in the Nvidia chip. Nvidia runs on Logic diamonds and logic diamonds exposed to Iridium 237 causes rapid decay and failure.

    If they would have had the packaging done in the USA instead of china things would have been ok.

    NOTE: there is no danger to the consumer, the paint on the outside of the boxes has high amounts of lead in it, shielding you from the Iridium 237 radiation.

    Cyrnfr hfr tbbtyr arkg gvzr gb trg na nafjre guvf fvzcyr dhrfgvba

    Thanks!

    --
    Do not look at laser with remaining good eye.
  4. Re:Again? by Anonymous Coward · · Score: 5, Funny

    Psh...AC isn't new. You must be new here!

  5. Re:Seriously, what is the issue with Nvidia chips? by kesuki · · Score: 3, Funny

    "If someone could explain in non-layman's terms what exactly the problem was I would much appreciate it."

    nobody else caught your request for 'non-layman's terms' so here goes:

    Chip Scale Packaging (CSP) Technology
    The information presented in this chapter has been collected from a number of sources describing CSP
    activities, both nationally at IVF and reported elsewhere in the literature. The most important of the former
    being the Chip Scale Packaging Task Force, an international multi-client programme carried out between
    1996 and 1997 and a project work carried out by two students at Chalmers University of Technology..
    D1. Introduction to CSP Technology
    D1.1
    Definition of CSP
    Originally, CSP was the acronym for Chip Size Packaging but very few packages are of true chip size.
    Therefore, the acronym is today usually used for Chip Scale Packaging. According to IPC's standard J-STD-
    012, "Implementation of Flip Chip and Chip Scale Technology", a CSP shall have an area of
    no more than 1.2X the area of the original die size and is direct surface mountable [D1].
    D1.2
    Description of various types of CSPs
    In contrast to most other package types, the name of the package type, "Chip Scale Packaging", contains no
    information about how the package is constructed, except for that it shall have approximately the same size
    as the chip. Therefore, CSPs include component types with probably more dissimilar characteristics than
    any two other IC package types clearly manifesting the inaccuracy to look at CSPs as a homogenous group.
    Some packages look like miniaturised BGAs which names like miniBGA and BGA indicate. Others have
    leads which give them properties similar to conventional leaded packages such as PLCCs. For this reason,
    CSPs are often classified based on their structure. At least four major categories have been proposed [D2].
    These are: flex circuit interposer, rigid substrate interposer, custom lead frame, and wafer-level assembly.
    Examples of packages of these categories are given in Figure D1.
    Chip
    Sealing Resin
    Lead Frame
    Wire Bond
    Tape
    Protective
    Layer
    Custom Lead Frame
    Package by Fujitsu
    Rigid Substrate Interposer
    Package by Matsushita
    Chip
    Sealing Resin
    Land pad
    Ceramic Substrate
    Via
    Stud Bump
    Flex Circuit Interposer
    Package by Tessera
    Chip
    Ring
    Lead
    Flex Tape
    Bump Array
    Elastomer
    Wafer-Level Assembly
    Package by ChipScale
    Metal Cap
    Epoxy
    Metal Lead
    Metal Plated Silicon Post
    Silicon Circuit
    Figure D1. Main CSP Categories
    D1.3
    Driving Forces for using CSPs
    The main driving forces for using CSPs are:
    Improvement in performance
    Size and weight reduction
    Easier assembly process (compared to bare die attach)
    Lower overall production costs.
    Of these, reduction of size and weight are probably the most important factors for initial adoption of CSP
    technology. Consequently, consumer products like camcorders, mobile phones, and laptops are among the
    products that have been first to utilise CSPs.
    D1.4
    Advantages and disadvantages using CSPs
    Chip Scale Packaging combines the best of flip chip assembly and surface mount technology. It gives
    almost the size and performance benefits as bare die chip assembly, at the same time as it offer the
    advantages of a encapsulated package. CSPs can be standardised, tested, surface mounted, and reworked.
    So far most CSPs have been produced for applications with rather low number of I/Os but many types of
    CSPs can be produced with large number of interconnections. However, before CSPs with large number of
    I/Os will find widespread use, techniques for producing reliable low-cost high-density printed boards must be
    developed.
    The advantages and disadvantages of CSPs depend on what one compare with, standard surface mount or
    bare die assembly. Due to the large spread of characteristics for various CSPs, it also depend on the type of

  6. Re:Curious to see where this one goes... by Shinmizu · · Score: 2, Funny

    Double Lifetime Warranty, eh? So, from now until you become a vampire, and then from that point on until some skinny blonde girl stakes you?