Lattice Semiconductor (LSCC) 28th Annual Needham Growth Conference Virtual summary

Business performance and market trends

• Achieved strong year-end and new year start, with over 150 million units shipped in the past year and a target of 180 million for the current year.

• Communications and computing represent over 50% of revenue, growing rapidly; server business grew 80% and communications 63% year-on-year.

• Industrial and automotive segments expected to return to growth in 2026, with inventory normalization by end of 2025.

• Consumer and new industrial applications, including aerospace, defense, and medical, are emerging as growth areas.

• Global customer base with 11,000 customers, top 200 driving most revenue.

Strategic pillars and product differentiation

• Focused on small and mid-range FPGAs, emphasizing low power, small size, and fast boot times.

• Differentiates through security leadership, post-quantum cryptography, and field programmability.

• Offers a platform approach with silicon, software tools, IP, and solutions to ease developer adoption.

• Product longevity is a key value, with commitments to 20-30 year lifecycles for industrial, automotive, and medical applications.

• Partnerships with NXP and others enable flexible processor-FPGA combinations for diverse applications.

Growth outlook and financial guidance

• Comfortable with consensus 21% growth for the current year; long-term growth target of 15-20% annually at high margins.

• 2026 projected as the year of the data center and small FPGAs (Nexus), with 2027 as the year of industrial/automotive and mid-range FPGAs (Avant).

• Design wins and product launches set up strong growth vectors for 2026 and 2027, with ongoing work for 2028.

• AI revenue expected to reach high teens percent of total in 2025 and mid-20s in 2026, split 60% data center, 40% industrial/auto.

• New product growth was 65% in 2025, with acceleration expected in 2026.