AMD is set to sell its digital TV business to Broadcom Corp for $192.8 million in cash. The deal is expected to provide Broadcom the resources to expand in both US and other emerging markets.

The agreement comes in the wake of directives issued by Federal Communications Commission in February this year, ordering all broadcast stations in the US to change transmission from analog to digital signals. This has opened up newer markets for companies like Broadcom which are eager to expand their digital television offerings. Broadcom officials revealed that they also expected emerging markets to provide a boost to their business since if US goes the digital way, other markets will be forced to follow suit.

The acquisition is expected to benefit Advance Micro Devices as well since the chipmaker had been struggling with its digital TV business for quite some time. The DTV business did not constitute AMD’s core sector and thus the company had been unable to monopolize on it. Last quarter AMD announced that it had discontinued operations on its DTV business and was looking to sell it. Things have not been going well for AMD as it continues to post successive losses in its struggle to remain in the microprocessor market, dominated by the chip-making giant Intel.