Korean electronics giant Samsung announced on Tuesday that it would offers refunds to customers who purchased Samsung PCs running on Intel's flawed chipset.

Announcing refunds, Samsung's spokesman James Chung said, “There are six PC line-ups released in Korea and one in the U. S., and we plan to fully refund or exchange the product in question.”

Samsung announced the refunds after Intel announced that it found design error in its newest "Sandy Bridge" processors.

The US-based chip maker also said that it decided to halt shipments of the new processors until the design error was not fixed. As per Intel’s estimates, it would have to spend around $1 billion to fix the flaw.

Intel’s Sandy Bridge processors combine standard processing and graphics units on a single die. But, a flaw in a support chip, called Cougar Point, could result into failures over time in connections to hard drives and DVDs.

Samsung spokesman said that the Korean firm would not face financial impact as the total payment would be funded by Intel.