Chip maker Broadcom (News - Alert) Corp. reportedly is set to buy Advanced Micro Devices Inc.’s digital TV unit for nearly $200 million, according to the companies.

 

Officials from Irvine, California-based Broadcom say the $192.8 million deal, which could be completed by the end of this year, is expected to bolster their own DTV business and create a product line covering the entire market.

 

The deal also will expand Broadcom’s customer base, according to Daniel Marotta, senior vice president and general manager of the company’s broadband communications group.

 

“We believe our combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers,” Marotta said.

 

AMD (News - Alert) officials say that about 530 of its workers, now located in six primary design centers around the world, “will be invited to join Broadcom.”

 

“AMD’s DTV product line includes all Xilleon integrated DTV processors and complete turnkey reference designs, as well as NXT receiver ICs, the Theater 300 DTV processor, and a line of panel processors that perform advanced motion compensation, frame rate conversion and scaling,” said officials from the Sunnyvale, California-based company.

 

According to The Associated Press, AMD shares rose 13 cents, or 2.2 percent, to $5.94, in premarket activity.

 

“(AMD’s) TV chips receive over-the-air broadcasts and process the signals to improve picture quality,” the AP said. “They are used in flat-panel and rear-projection sets.”

 

Dirk Meyer, president and chief executive officer of AMD, said the company’s strategy was to become smaller so that it could focus on creating a business model that would work in the long term.

 

“The sale of our DTV business is a key step in AMD’s transformation, helping to strengthen our balance sheet, lower our breakeven point, and hone our focus in order to take full advantage of our position as a leader in both microprocessors and graphics technology,” Meyer said. “Broadcom will be a great fit for our talented DTV employees and the DTV products they have created.”