Consumers question nVIDIA's evasive response to chip defect
NEW YORK, Sept. 3 /PRNewswire-USNewswire/ -- Amplifying consumer ire,
labor union UNITE HERE has launched blog site http://www.mynvidiafail.org
demanding that nVIDIA (Nasdaq: NVDA) recall flawed laptop chips. The chip
failure affects an undisclosed number of laptops, stopping them from booting
up and causing display screens to go dark.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070817/CLF013LOGO )
nVIDIA's July 2, 2008 SEC 8-K filing describes the chip defect as 'a weak
die/packaging material set found in certain versions of [its] previous
generation MCP and GPU products used in notebook systems.' nVIDIA has not
publicly disclosed which chips are at risk of product failure.
nVIDIA's second quarter fiscal year 2009 financial results, released
August 12, show nVIDIA took a $196 million charge for repair costs on the
defective chips. An August 19th article in the Wall Street Journal, 'Chip
Problems Haunt Nvidia, PC Makers,' quotes JoAnne Feeney, an analyst at FTN
Midwest Securities Corp., as saying she is concerned that nVIDIA's $196
million might not be sufficient. nVIDIA's CEO Jen-Hsun Huang states, 'So we
think we have a pretty good handle on the situation but - and we thought that
we were relatively conservative but we'll see how it goes.'
Jim Dupont, Vice President of UNITE HERE International states, 'The $196
million charge means very little if we do not know which chips and which
laptops are affected or how many of the defective chips were sold. In order
for nVIDIA to reinstate consumer confidence they must reveal and recall
defective chips.'
Given the degree of uncertainty around nVIDIA's computer chips, UNITE HERE
has taken steps to increase consumer and investor awareness. UNITE HERE is
calling on nVIDIA to take greater responsibility for their products' defects
and issue a recall before consumers, computer companies like Dell and HP,
regulatory agencies, law firms, or additional consumer watchdogs intervene.
For more information on UNITE HERE's Consumer Recall, see
http://www.mynvidiafail.org.
SOURCE UNITE HERE
