AMD sells digital TV division

August 26, 2008 // 1:04 p.m.

Tags: #amd #ati #broadcom #digital-tv #dtv #losses #nxt #ruiz #xilleon

AMD has announced that it is to sell its digital television business to Broadcom for $192.8 million in an effort to return to its core competencies – and, hopefully, profitability.

CNet reports that the assets of AMD's digital TV division – which includes the Xilleon range of integrated DTV processers, NXT receiver integrated circuits, and specialised processors for embedding in display panels to perform motion compensation, frame rate conversion, and high-quality image scaling – will be transferred to Broadcom in exchange for the cash injection.

The 530-some AMD workers currently employed by the DTV division will be “invited to join Broadcom,” which isn't quite a guarantee against job losses, but looks a lot brighter than the fates of the last workers to be identified as surplus to requirements.

AMD has been looking to ditch the DTV division ever since Hector Ruiz was replaced as CEO by Dirk Meyer, who introduced efforts to stem massive losses in its core markets. The purchase of graphics specialists ATI back in July 2006 helped to bolster the companies offerings – and introduced the ability to offer an Intel-style 'complete package' of processors, motherboard chipsets, and graphics chipsets – but cost the company $5.4 billion at a time when the industry was suffering a slowdown. Coupled with Intel's return to the top in the performance charts, AMD must be hoping that the cash injection will be what it needs to return to profitability.

Do you believe that selling the digital TV division is the right thing for AMD to be doing, or does it weaken its offering in the 'digital home' market? Share your thoughts over in the forums.

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