Advanced Micro Devices will sell its unit that makes chips for digital TV sets to fellow chip maker Broadcom for €130.4 million (US$192.8 million) in cash, an Associated Press report said.
The Associated Press report also quoted Dirk Meyer, president and chief executive, saying AMD is selling the unit as part of a program to reduce debt and improve profitability.
The company is a distant second to Intel in its main market of computer processors, and competition has intensified.
'AMD is executing a strategic plan to transform the company, becoming leaner and more focused while seeking to create a business model to deliver sustainable profitability,' Meyer said.
The company's TV chips receive over-the-air broadcasts and process the signals to improve picture quality. They are used in flat-panel and rear-projection sets.
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.