Transcript
Case Study: Intel’s 1994 Pentium Chip Flaws
CASE OVERVIEW
In 1994, medias reported the flaws in Intel’s Pentium Chips
The chip produced malfunctionedReputation was tarnishedCEO would not replace unless consumer could
prove the chip’s malfunctionFinally, forced to replace all chips, costing
approximately 420 million
CAUSES OF FLAWS ?
Errors in floating-point unit (FPU) and caused a
wrong answer when double-precision arithmetic, a
very common operation, was performed.
Consumers were aware of this this issue
No proper action taken to solve this issue
STEPS TAKEN BY INTEL…
Apologised through newspapers
Agreed to send new chips to their consumers
within 60 days
Agreed to help install the chip themselves or pay to
have someone do it for them
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