Set-Top Box Design Is Unveiled

In its ongoing effort to become a one-stop shop for set-top box and cable modem manufacturers, Irvine-based Broadcom Corp. unveiled a technology design that allows cable television operators to offer local phone service and video conferencing to consumers and businesses.

The design describes how different components used inside cable set-top boxes can work together to give TVs all of a computer’s basic Internet capabilities--such as Web surfing and e-mail--and allow cable companies to offer advanced entertainment services.

The design incorporates Internet telephone technology unveiled by Santa Clara-based 8x8 Inc. After the announcement, the semiconductor firm’s stock price surged more than 154%, rising $5.69 a share to close at $9.38.

Broadcom’s news, announced at the Western Cable Show in Anaheim, is the latest step by the Orange County company to make set-top boxes smarter and more powerful.

Last month, the company unveiled an advanced graphics chip that brings TV and the Internet to the small screen at the same time--but without the annoying flickering. A split screen would allow text, graphics, video and digital 3-D capabilities on a television screen.

In September, the company rolled out a single computer chip that contains all the complicated circuitry needed for connecting to the Internet through a TV set.

By packing the circuitry for meshing TV signals and computer data onto one chip instead of three, Broadcom is expected to cut the cost of home equipment for the emerging set-top box market, analysts said.

Broadcom stock rose $2.19 a share Wednesday, closing at $92.81 on the Nasdaq market.