DailyTech writes the report from DigiTimes about defective ATI Radeon GPU was completely untrue:
Although the article stated that Asustek Computers, Micro-Star International (MSI) and Gigabyte Technology all experienced a problem with improperly flashed cards, all three manufacturers have since denied the existence of any such defect.
Several product managers and engineers were left scratching their heads when confronted about receiving batches of faulty Radeon HD parts. ASUS representatives, speaking on the condition of anonymity, claim that no journalists inquired to the company about faulty Radeon-series graphic adaptors, and that the company has not found a single defective in its inventory.
When approached as to the nature of the defect, a Taiwanese graphics adaptor engineer stated, “ATI did deliver some chips without UVD to Acer for one of its projects and that’s it. All chips delivered to other OEM and ODM has the UVD enabled.” Universal Video Decoder, or UVD, is a hardware acceleration unit found on the Radeon HD 2600 and 2400 graphics processors.
One AMD engineer, also speaking on terms of anonymity, claim that there are no cards in the channel with a UVD problem and they are unaware of faulty products leaving the factory. "Any report claiming that defective HD 2600 and 2400 [cards] are recalled in the channel is completely untrue."