Irvine’s Broadcom Corp. is paying $192.8 million in cash for the digital TV chip business of Advanced Micro Devices Inc.
The deal stands to expand Broadcom’s business providing chips to makers of digital TVs, the company said.
The business includes processors that handle digital signals in TVs, receivers that pick up broadcast signals and others that control how a picture is displayed. Customers include Sony Corp. and Samsung Group.
Broadcom already makes chips, digital TV processors, receivers and what it calls a system on a chip, which handles several functions.
About 530 AMD employees in six design centers around the world are expected to join Broadcom as part of the acquisition.
Speculation had Broadcom as a potential buyer of AMD’s digital TV chip business.
In recent weeks, Sunnyvale-based AMD said it was considering selling off its unit that makes chips for high-definition video, digital TV tuners and graphics,
Advanced Micro got into the digital TV chip business through its $5 billion acquisition of Canada’s ATI Technologies Inc. in 2006.
Broadcom appears to be paying less for the business than some analysts had expected. Some thought the business could sell for $250 million to $375 million.
The deal is expected to close in the fourth quarter. Broadcom said it could see an undetermined one-time charge for research and development expenses related to the acquisition.
