Intel Recalls New Chipsets

Intel (INTC Quote) announced the recall of some chipsets Friday -- code-named Grantsdale and Alderwood -- less than a week after their much-ballyhooed launch.

Intel shares were recently down 16 cents, or 0.6%, to $27.83.

Officially called 915 G/P and 925X, the chipsets coordinate communication between a computer's microprocessor and the rest of the system. The latest models integrate high-quality audio, video and a faster data highway.

"The good news is we think almost none of the impacted product -- or very little -- has reached the end customer because we caught it early and have been working with our customers to replace all the lots with non-affected product," Intel spokesman Bill Calder told the Associated Press.

The problem arose because a thin film applied to one of the chips during manufacturing was not removed, Calder told the newswire service. He claimed to not know whether a PC or motherboard maker discovered the problem. Citing the "quiet period" before Intel's earnings release on July 13, the spokesman would not specify the number of units affected or any potential financial impact stemming from the recall.

Coincidentally and separately, Hewlett-Packard (HPQ Quote) on Friday announced the discovery of a flaw in the memory modules of certain notebook computers. The modules were manufactured by third parties, including Micron (MU Quote) and Infineon Technologies (IFX Quote), the company said.