Advanced Micro Devices Inc decided to sell TV-chip business for US$192.8 million to Broadcom Corp.

August 27, 2008 · By ProfitEdition News Filed Under Investing

Advanced Micro Devices Inc.(AMD) announced earlier in the week to sell its digital TV-chip manufacturing unit for US$192.8 million in cash to its fellow chip maker Broadcom Corp. According to AMD’s president and chief executive Dirk Meyer, company is taking this step under the plan of reducing debts and increasing profitability. In its chief market of computer processors the company is a distant second to Intel Corp., and the competition has straightened.

According to Meyer the AMD is undertaking the plan to establish itself more strongly and to modify the company, becoming leaner and more focused. As well as the company is trying to create a business pattern that gives sustained profitability.

A TV chip of the Sunnyvale, Calif.-based company receives over-the-air broadcasts and processes the signals to advance picture quality. Senior vice president and general manager of the Irvine Calif.-based company’s Broadband Communications Group. - Daniel Marotta stated that this unit will become center of the digital TV business field of Broadcom. The unit presently has about 530 employees and they will be offered to join Broadcom Corp. after the deal. There are chances that deal will be completed by the end of the year.

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