AMD selling TV chip unit to Broadcom

Advanced Micro Devices will sell its unit that makes chips for digital TV sets to fellow chip maker Broadcom for $192.8 million in cash, the companies announced Monday.

AMD is selling the unit as part of a program to reduce debt and improve profitability, said Dirk Meyer, president and chief executive. The company is a distant second to Intel in its main market of computer processors.

The companies expect the deal to close by the end of the year. The unit has about 530 employees. They will be invited to join Broadcom.

AMD shares rose 12 cents, or 2.1 percent, to $5.93.