LATTICE SEMICONDUCTOR ACQUISITIONS DRIVER
LATTICE SEMICONDUCTOR ACQUISITIONS SOFTWARE

I liked it when chief strategy and marketing officer Esam Elashmawi said that product portfolio expansion drives customer intimacy by helping Lattice define the product.

LATTICE SEMICONDUCTOR ACQUISITIONS SOFTWARE

Lattice's strategy moving forward involves rapidly expanding its small and mid-range FPGA portfolio and software solution stack. I would attribute Lattice's 'taking' the market to its emphasis on software solutions for its small and mid-range FPGAs. In my previous analysis of Lattice's 2021 Investor Day, I said that software stacks will help Lattice go from 'making' the market to 'taking' the market as a better alternative to controllers and ASICs. Customers that program small FPGAs then have a familiar solution to use when adopting Lattice's Avant FPGAs for mid-range market applications. Good hardware follows good software, and as Lattice expands its software stack to include more software-based solutions such as Lattice Automat and Lattice ORAN, it is making FPGAs easier to program, giving customers a faster time to market. Lattice is also positioned well for a high-growth phase because of its emphasis on software solutions and the adoption of mid-range FPGAs for customers that already use the company’s small FPGAs. Any FPGA can be reprogrammed when exposed to security threats, and each device performs tasks in isolation at the hardware level. FPGAs provide a unique level of security because of their innate reprogrammability and hardware isolation.

LATTICE SEMICONDUCTOR ACQUISITIONS DRIVER

Security is also becoming a key growth driver for FPGAs, especially in servers. Power efficiency and versatility are also two valuable enablers for edge computing. They are also more power-efficient than CPUs and GPUs for running specific tasks-in the case of AI, processing large amounts of data. FPGAs are versatile devices that can be programmed and reprogrammed as AI algorithms evolve and iterate. Lattice is positioned well to take advantage of the growth of AI. It also has a big role to play in industrial automation and robotics.

AI is becoming a key part of the automotive industry thanks to autonomous driving and advanced driving assistance systems (ADAS).

These four markets are also not mutually exclusive they share some of the same growth drivers, including the accelerated use of AI, the increased demand for secure computing and the ongoing need for more performance and efficiency. Lattice hit the nail on the head in identifying these four target markets, all of which are expected to grow substantially in the next decade. Lattice raised its long-term financial model targets, increasing its target gross margin expansion, lowering its target operating expenses, and raising its target operating income.Īt the same time, Lattice has situated itself into four core markets so that 90% of its revenue comes from communications, computing, industrial and automotive. Not only did Lattice exceed these expectations, but these goals put Lattice in a great position to move from a repositioning phase to a growth and expansion phase.

Lattice semiconductor acquisitions