Lattice Semiconductor (LSCC) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Market overview and positioning

• FPGA market is valued at $7.5 billion, with focus on small and mid-range segments expected to grow faster than large FPGAs.

• Company aims to lead in small and mid-range FPGAs, with Nexus and Avant product lines targeting inflection points in 2026 and 2027.

• Four main markets served: industrial, automotive (45% revenue), comms, compute (45%), and consumer (9%).

• FPGAs offer flexibility, power efficiency, and are well-suited for evolving applications like security, sensor fusion, and AI bridging.

• Market share currently at $500 million out of $7.5 billion, with growth driven by shorter design cycles and rising ASIC costs.

Business strategy and growth drivers

• Focus remains on customer-driven strategy, not competition, with innovation and value as key differentiators.

• Growth to be driven by new products: Nexus (small FPGA) and Avant (mid-range), with new product revenue expected to double by 2026.

• Comms and compute segments are strong, with sequential growth expected through 2026; industrial and auto to recover as inventory normalizes.

• Inorganic growth opportunities considered in security, vision, edge AI, and across verticals, but with disciplined financial criteria.

• Management emphasizes disciplined execution and leveraging technology for step-function growth.

Software and solutions strategy

• Tools are the primary investment, with 100% attach rate; IP and solutions are layered on top, with incremental investment as scale grows.

• Six key software solutions target edge AI, security, industrial automation, automotive, wireless, and vision, aiming to speed customer time to market.

• Software strategy focuses on lowering barriers to adoption and increasing value for customers.