Lattice Semiconductor (LSCC) Morgan Stanley Technology, Media & Telecom Conference summary

Strategic positioning and product roadmap

• Leadership in small FPGAs, recently expanded to mid-range, doubling market opportunity.

• Core markets are communications, compute, industrial, and automotive, now 90% of revenue.

• Product roadmap is the strongest in company history, with differentiation in low power and small form factor.

• Small FPGAs offer up to 4x lower power and 6–10x smaller form factor than competitors.

• Over 11,000 customers, with significant investment in software and solution stacks to ease customer adoption.

Organizational changes and cost management

• Recent executive hires and internal promotions have strengthened leadership.

• Q4 actions included a 14% reduction in headcount and OpEx, focusing on efficiency without impacting the product roadmap.

• Shifted key executives to lower-cost regions to leverage efficiencies and accelerate initiatives.

• Expecting normalized demand revenue by year-end, with current shipments below true demand.

• Continued investment in organic growth, with inorganic opportunities considered only if they accelerate strategy.

AI, security, and market trends

• AI-related revenue comes from AI servers, edge AI, and direct inferencing on devices.

• Lattice FPGAs are integral in AI server racks, edge applications with partners like NVIDIA, and client devices for user detection and security.

• Security is a major growth area, especially in preparation for the post-quantum era, with partnerships involving Meta, Microsoft, and Ericsson.

• Leading in post-quantum cryptography, working closely with hyperscalers and OEMs.

• Focus on securing not just servers but also communication, networking, and industrial infrastructure.