Washington  - Struggling computer chip-maker Advanced Micro Devices (AMD) is to sell its digital television business to Broadcom Corp for 192.8 million dollars, the company announced Monday at its headquarters in Sunnyvale, California.

AMD is working to "transform the company, becoming leaner and more focused," Dirk Meyer, AMD's new president and chief executive, said in a statement. "The sale is a key step in helping to strengthen our balance sheet, lower our break-even point, and hone our focus."

Broadcom makes DTV receivers, processors and other products for high-definition television.

In Monday morning trading, AMD stock climbed 4.7 per cent to 6.08 dollars, the highest in two months, while Broadcom declined 3 per cent to 26.59 dollars, Bloomberg financial news agency reported.

The world's second-largest maker of personal computer processors will sell the unit that produces semiconductors used in lower-priced digital TVs, in an attempt to streamline its business and return to profitability.

AMD has struggled in recent years to compete with sector leader Intel, and in July reported a loss of 1.2 billion dollars on the quarter. AMD's revenue rose to 1.35 billion dollars from 1.31 billion dollars, but it was short of the 1.45 billion dollars expected by Wall Street. (dpa)