Avnet, an electronics supplier in Arizona, has filed a lawsuit against California's Ampere Computing, alleging breach of a server purchasing agreement. The dispute traces back to 2021 when Ampere sought to boost revenue from its Altra processors by issuing purchase orders for barebones servers via ODMs like Gigabyte. However, due to pandemic-related supply chain disruptions, Gigabyte demanded terms that Ampere refused to accept, leading to the legal conflict. This litigation highlights the challenges faced by new players in the semiconductor industry amidst ongoing supply chain issues.
"Gigabyte was unwilling to accept direct orders from Ampere unless Ampere agreed to certain business terms which Ampere was unwilling to accept."
"The problem Ampere faced was that the technology market had not recovered from the supply chain disruption brought about by the COVID-19 pandemic."
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