Intel may face class action lawsuit due to delay in launching 7nm chips

Intel previously announced that its upcoming 7nm process had encountered some problems, which delayed the launch of the next-generation chip by 6 months, at least until 2022. According to cnBeta, last Friday, Hagens Berman law firm called on Intel investors who suffered heavy losses to contact the company for possible class action lawsuits. The law firm also sought people who could assist it in investigating potential securities fraud.

“Starting at the company’s 2019 annual investor conference, Intel has repeatedly said it would begin shipping its first 7nm chips in 2021. The news was well received as the company claimed that 7nm chips would deliver twice the area efficiency of 10nm chips. In addition, after severe delays in its 10nm chip manufacturing, Intel eased concerns by stating ‘we have made time to market a priority’ and repeatedly affirmed the timeline for 7nm chips,” Hagens Berman noted.

But in a recent earnings call, Intel CEO Bob Swan said the company had discovered a "defect mode" in its 7nm process that was causing yield issues. As a result, Intel has launched "contingency plans," which Swan later defined as including using third-party foundries, all of which means its 7nm chips won't be available until 2021 or 2022.

Hagens Berman is now investigating whether Intel misrepresented and concealed manufacturing and performance issues with its 7-nanometer chips. They are also asking whistleblowers with non-public information about Intel to contact them. "Under the new program, whistleblowers who provide original information may receive a total reward of no more than 30% of the SEC's successful recovery," he said.