Irvine, Calif. - Chipmaker Broadcom (NASD: BRCM) announced on Monday that it will acquire fellow chipmaker AMD's (NYSE: AMD) digital TV business for about $192.8 million in cash.

Broadcom said the deal will expand its customer base, and allow it to offer a product line that covers all segments of the digital TV market.

The company said it will seek to retain over 530 AMD employees across six AMD design centers.

"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," said AMD president and CEO Dirk Meyer.

"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."

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