Samsung Electronics said on Tuesday it would fully refund customers who had purchased its personal computers with flawed chipsets from Intel Corp.

Intel announced on Monday that they have discovered a design flaw in a recently released support chipset, the Intel 6 Series also known as Cougar Point. The company estimates the cost at $1 billion in repairs and revenue loss.

There are six PC line-ups released in Korea and one in the US, and we plan to fully refund or exchange the product in question, Dow Jones Newswires reported quoting James Chung, spokesman for Samsung.

However, Samsung said that the move will not affect the company financially, as total repayment to its customers will be funded by Intel.

The chip giant Intel announced this week the Serial-ATA (SATA) ports within the Cougar Point chipsets may degrade over time. This could in turn affect the performance or functionality of SATA-linked devices such as hard disk drives and DVD drives. The chipset will be used in PCs with Intel's latest Second Generation Intel Core processors, also known as Sandy Bridge.

Intel vice president Steve Smith said that the chipset flaw was more of an impending product problem that would temporarily halt production; rather than one that affects current products.