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Intel Resumes Shipment Of Faulty Chip

SAN FRANCISCO (AP) -- Intel Corp. has resumed shipments of a chip with a known flaw. But in order to get it, computer makers must promise not to use it in designs that trigger the serious performance problem.

Intel stopped production of the faulty "chipset" last month, after discovering that it would cause some computers to gradually lose their ability to talk to their hard disk and DVD drives. Cleanup was expected to cost $1 billion.

Intel said Monday that customers demanded that the faulty chip go back on sale while Intel hustles out a fixed version of the chip, which is expected to ship this month. Computers can be designed in a way that avoids the problem.

Intel said the latest decision wouldn't change the company's financial guidance.

Intel's Folsom campus houses 1.5 million square feet of office, lab and test space. It's home to the company's Americas Sales and Marketing and Information Technology departments.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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