Broadcom Wins Scientific-Atlanta Contract

Broadcom Corp. said Thursday it won a contract from Scientific-Atlanta Inc. to produce semiconductors for the maker of cable-TV set-top boxes through 2000, expanding Broadcom’s reach in the market for the advanced systems.

Under the agreement, Irvine-based Broadcom, which designs chips that speed Internet access over ordinary telephone and cable-TV lines, will deliver at least 500,000 chips to Scientific-Atlanta next year. Terms weren’t disclosed.

Scientific-Atlanta, one of the leading U.S. makers of cable set-top boxes and digital cable-TV systems, has positioned itself to benefit from cable companies’ digital upgrades.

Despite the order, Broadcom’s stock retreated for the second consecutive day. Shares fell $5.25 to $65.75, a day after absorbing a $6 drop. Scientific-Atlanta closed at $20.38, off 75 cents a share.