Intel allowed a new chipset onto the market with a small flaw, now it will lose an estimated $1Billion.
The new Sandy Bridge Architecture core-i chips were released reccently (core i-5 and i-7, the ones in the new MacBook Pros). I was looking forward to building a desktop PC with one of these chips because of the Quick Sync technology which really speeds up video transcoding. Also the new chips are faster than the previous generation core-i chips.
The chipset with the flaw was for use with these new processor chips, and is mounted on the motherboards that have sockets for the new Intel processors.
Motherboards for the new processors appeared on the market in January, priced normally in the $100-$300 range for various features, and were also manufactured by OEMs for the PCs they would supply.
Then this flaw was discovered that affected the SATA 2 ports on the otherboards - if you have a current hard drive it is likely a SATA 2 drive. What happens is that the drive will transfer data, then after a while it will bog down, and eventually disconnect! If you use a SATA 3 port you were not affected, but not many SATA 3 drives (6Gb/sec) are in use. Or you could just plug your SATA 2 drives only into the SATA 3 ports (2 SAta 3 ports supported by the chipset, 4 SATA 2 ports) and waste the SATA 2 ports...but that will not fly...
Bottom line is that ALL the P67 and H67 chipsets and ALL the motherboards that already have them mounted have to be recalled. I went to look the other day and all the motherboards are gone from the internet vendors!
I think it will be 750 million to retool and remanufacture, and 250 million to process the recalls (or is it the reverse?).
And the flaw was a simple oversight iin the engineering process! Intel's revenue I think was 8 Billion last year?