AMD to Buy National Semiconductor Unit

Advanced Micro Devices Inc., Intel Corp.’s biggest rival in computer processors, agreed to buy a National Semiconductor Corp. unit that makes chips for television set-top boxes and hand-held computers.

Financial terms were not disclosed.

National Semiconductor, based in Santa Clara, Calif., said in February it wanted to sell the unit to focus on higher-margin businesses.

Shares of Sunnyvale, Calif.-based Advanced Micro fell 1 cent to $7.26, and National Semiconductor rose 44 cents to $22.97, both on the NYSE.