Lattice Semiconductor makes money by designing and selling programmable logic semiconductor devices—primarily field-programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs)—along with associated software tools, intellectual property licenses, and design services. The company operates a fabless business model, meaning it designs chips but outsources manufacturing to third-party foundries such as United Microelectronics Corporation (UMC) and others, avoiding the capital intensity of semiconductor fabrication plants. In FY2025, Lattice generated $523.3 million in revenue, with 84% ($438.5 million) flowing through distributors and 16% ($84.8 million) through direct sales to original equipment manufacturers. This heavy reliance on distribution—typical for mid-sized semiconductor companies—provides broad market reach, especially in Asia where 68% of FY2025 revenue originated, while direct relationships capture higher-margin design wins with strategic accounts. Revenue is disaggregated across three end markets. The Communications and Computing segment was the largest and fastest-growing in FY2025, generating $292.7 million or 55.9% of total revenue, up 28.3% from $228.1 million in FY2024. This segment encompasses data center servers and networking equipment, client computing platforms, wireless and wireline communications infrastructure, and cloud hyperscaler deployments. Lattice's FPGAs in this market serve as companion chips to CPUs, GPUs, NICs, switches, storage controllers, and BMCs—providing control-plane functions, I/O expansion, security acceleration, and power management that are too specialized or too low-power for the main processors to handle efficiently. The Industrial and Automotive segment contributed $194.0 million (37.1% of FY2025 revenue), down 18.1% from $236.9 million in FY2024 as customers worked through excess inventory accumulated during the post-pandemic supply chain crunch. This segment includes factory automation, robotics, automotive electronics, ADAS systems, industrial IoT, and machine vision applications where Lattice's low-power, small-form-factor FPGAs enable real-time processing, sensor fusion, and motor control. The Consumer segment added $36.6 million (7.0% of revenue), down 17.4% from $44.3 million in FY2024, covering smart home devices, wearables, displays, televisions, and sound systems. Lattice's product portfolio is organized around three FPGA platforms. The Lattice Nexus platform targets small FPGAs with industry-leading power efficiency, featuring families such as iCE40 for ultra-low-power mobile and edge applications, CrossLink for video and vision processing, Certus-NX for general-purpose logic with enhanced security, and MachXO for control and initialization functions. The Lattice Avant platform, introduced in 2022, extends the company's reach into the mid-range FPGA class with improved power-performance ratios, competing with lower-end offerings from AMD/Xilinx and Intel/Altera. The legacy MachXO platform remains a workhorse for system control, power sequencing, and board management across all end markets. Complementing the silicon, Lattice generates recurring revenue from software licenses and solution stacks. The Lattice Radiant and Propel design tools enable customers to program FPGAs using intuitive interfaces, while solution stacks such as sensAI (machine learning inference), mVision (machine vision), Automate (industrial automation), Sentry (security), and Drive (automotive) provide application-specific IP and reference designs that accelerate customer development and increase switching costs. The company's business model is characterized by exceptionally high gross margins—69.3% on a non-GAAP basis in FY2025—reflecting the proprietary nature of FPGA architectures, the high switching costs once a design is qualified, and the value-added software and IP that accompany silicon sales. Operating leverage is significant: with only 1,174 employees, Lattice generated $149.2 million in non-GAAP operating income, yielding a 28.5% non-GAAP operating margin. The fabless model keeps capital expenditures minimal—$42.5 million in FY2025, or just 8.1% of revenue—enabling strong free cash flow generation of approximately $118.3 million over the trailing twelve months. If the Communications and Computing segment were to disappear, Lattice would lose not only 56% of its revenue but also its primary growth engine, its highest-margin product mix, and its strategic positioning at the center of AI infrastructure buildout—a loss that would reduce the company to a $230 million industrial FPGA supplier with limited growth prospects and diminished relevance to the technology sector's most important secular trend.