Lattice Semiconductor Corporation
Semiconductors - Programmable Logic DevicesFounded 1983- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Lattice Semiconductor Corporation
Company History
Founded 1983 in Hillsboro, Oregon
Last reviewed: 2025-07-15 · By Swet Parvadiya
Lattice Semiconductor generated $523.3 million in FY2025 revenue, a 2.7% increase that marked the beginning of a recovery from the 30.9% FY2024 decline, with non-GAAP gross margins expanding to 69.3% and non-GAAP operating income reaching $149.2 million for a 28.5% operating margin—among the highest in the semiconductor industry. This performance was driven by 28.3% growth in the Communications and Computing segment to $292.7 million, as hyperscalers and server OEMs adopted Lattice's low-power control-plane FPGAs for AI-optimized data center infrastructure. With approximately 1,174 employees, a market capitalization exceeding $18.5 billion, and the pending $1.65 billion acquisition of American Megatrends that would transform the company into a silicon-plus-firmware platform provider, Lattice stands as the last fully independent major FPGA manufacturer and is executing one of the most audacious strategic pivots in semiconductor history.
C. Norman Winningstad was an American entrepreneur and technology executive who co-founded Lattice Semiconductor Corporation in 1983 and served as its chairman during its critical early years. Born in Oregon, Winningstad had previously founded Floating Point Systems, a successful computer and peripheral manufacturer, giving him the capital and credibility to back Rahul Sud and Ray Capece's vision for a programmable logic company. He invested in Lattice partly to foster technology development in Oregon's Silicon Forest and helped raise approximately $19 million in seed funding. When the company faced bankruptcy in 1987 due to mismanagement by the original founders, Winningstad stepped in, restructured debt, slashed headcount from 140 to 64, and guided Lattice through Chapter 11 in under 90 days. He recruited Cyrus Tsui as CEO in 1988 and oversaw the company's 1989 IPO before departing as chairman in 1991. Winningstad's decisive intervention during Lattice's darkest hour saved the company from liquidation and established the foundation for its four-decade survival.
Rahul Sud was an Indian-born semiconductor engineer and co-founder of Lattice Semiconductor Corporation. After gaining experience as a chip designer at Intel and Inmos, Sud partnered with Ray Capece and C. Norman Winningstad to found Lattice International Inc. in April 1983. Sud served as president and provided the technical vision for the company's programmable logic device strategy. However, his lack of management experience led to critical missteps including extravagant spending, missed production schedules, and failed product launches. The company lost $7 million in 1986, and Sud was dismissed by the board in December 1986. He later filed a wrongful discharge lawsuit against Lattice, settling out of court. Despite the company's near-collapse under his leadership, Sud's technical insights into programmable logic established the foundation for Lattice's eventual product direction.
Ray Capece was an American venture capital professional and co-founder of Lattice Semiconductor Corporation. With experience in capital raising through his association with venture capitalist Ben Rosen, Capece partnered with Rahul Sud and C. Norman Winningstad to establish Lattice International Inc. in 1983. He handled the company's early financing efforts but, along with Sud, struggled with operational management. The founders' extravagant spending on a 140,000-square-foot headquarters, expensive perks, and failed product strategies led to Lattice's near-collapse and Chapter 11 bankruptcy filing in 1987. Capece departed during the reorganization, and his role in the company's early history serves as a cautionary tale about the importance of operational discipline in technology startups.
C. Norman Winningstad, Rahul Sud, and Ray Capece incorporate Lattice International Inc. on April 3, 1983, to develop programmable logic devices for the emerging PC and telecommunications markets.
Lattice reincorporates in Delaware in 1985, establishing the corporate structure that would persist through its public listing and beyond.
Following mismanagement that produced a $7 million loss on $7 million in revenue, co-founder Rahul Sud is dismissed by the board in December 1986, marking the first major leadership transition.
Lattice files for Chapter 11 bankruptcy protection in July 1987 after failing to secure additional financing. C. Norman Winningstad steps in as chairman, raises $7.5 million, slashes headcount from 140 to 64, and guides the company through reorganization in 62 to 88 days.
Cyrus Tsui, a semiconductor executive with experience at AMD, Fairchild, and Monolithic Memories, becomes CEO and provides the operational discipline that transforms Lattice from a near-bankrupt startup into a viable competitor.
Lattice goes public on November 9, 1989, with shares listed under ticker LSCC at $6 per share, raising almost $14 million to fund growth in high-density programmable logic devices.
In July 1990, Lattice completes a secondary offering of nearly 1.5 million shares at $16.25 per share, raising $22.6 million to invest in R&D for new FPGA technology.
In March 1992, Lattice introduces its first family of eight high-density programmable logic devices, three months ahead of schedule, marking the company's entry into the FPGA market beyond its legacy CPLD business.
Lattice's annual revenue reaches $560 million with profits of $160 million, and the stock hits an all-time high of $41.34 (adjusted for splits), as the company rides the networking and telecommunications boom.
Lattice acquires Agere Corporation's FPGA division, expanding its product portfolio and engineering capabilities in programmable logic.
Lattice settles charges with the U.S. government that it had illegally exported certain technologies to China, paying a fine of $560,000.
Steve Skaggs becomes CEO, replacing Cyrus Tsui, and the company conducts its first layoffs as it struggles to maintain profitability in the post-dot-com era.
Bruno Guilmart replaces Steve Skaggs as CEO, continuing the search for a coherent strategy amid intensifying competition from Xilinx and Altera.
Darin Billerbeck, former Zilog CEO, becomes CEO and begins repositioning Lattice for growth, though the company remains challenged by larger competitors.
Lattice acquires SiliconBlue Technologies, a Santa Clara-based ultra-low-power FPGA company, for $63.2 million in cash, adding the technology that would become the iCE40 family and establishing Lattice's leadership in low-power programmable logic.
Lattice completes the $606 million acquisition of Silicon Image, adding video connectivity and interface IP, and moves its headquarters to downtown Portland, Oregon.
Chinese state-backed Tsinghua Holdings accumulates a roughly 6% stake in Lattice through open market purchases, raising national security concerns and foreshadowing the CFIUS review to come.
President Donald Trump blocks Canyon Bridge Capital Partners' $1.3 billion acquisition of Lattice on national security grounds based on a CFIUS recommendation, forcing Lattice to commit to a standalone strategy.
Jim Anderson, former AMD Computing and Graphics chief, becomes CEO in September 2018. Activist investor Lion Point Capital acquires a 6% stake and secures three board seats. Anderson refocuses Lattice entirely on low-power FPGAs and solution stacks.
Lattice relocates its headquarters from downtown Portland back to its Hillsboro campus, reconnecting with its Silicon Forest roots.
Lattice acquires Mirametrix, a computer vision software company, adding AI and machine vision capabilities that complement its low-power FPGA hardware.
AMD completes its $49 billion acquisition of Xilinx in February 2022, leaving Lattice as the only fully independent major FPGA manufacturer, a status that becomes a competitive advantage for customers seeking supplier independence.
Lattice achieves record annual revenue of $737.2 million with GAAP net income of $259.1 million, the culmination of Jim Anderson's turnaround strategy.
CEO Jim Anderson abruptly departs in June 2024 to become CEO of Coherent Corp., sending Lattice shares down 16%. Esam Elashmawi serves as interim CEO before Ford Tamer, former Inphi CEO, is appointed permanent CEO in September 2024.
Lattice reports FY2025 revenue of $523.3 million, up 2.7% from FY2024, with non-GAAP gross margins of 69.3% and non-GAAP operating margins of 28.5%, as Communications and Computing revenue grows 28.3% to $292.7 million.
On May 5, 2026, Lattice announces a definitive agreement to acquire AMI, a provider of platform firmware and infrastructure manageability, for $1.65 billion in cash and stock, a transformative deal that would double Lattice's addressable market and position it as a comprehensive silicon-plus-firmware platform provider.
To acquire ultra-low-power FPGA technology and intellectual property that would become the foundation of Lattice's iCE40 family, establishing the company's leadership in the sub-milliwatt programmable logic segment. SiliconBlue was a Santa Clara-based startup founded by FPGA veterans from Xilinx and Altera.
To expand Lattice's portfolio into video connectivity, interface IP, and HDMI/MHL technologies, while adding revenue scale and diversifying beyond pure programmable logic. Silicon Image was a publicly traded company with approximately $250 million in annual revenue.
To add computer vision and AI software capabilities that complement Lattice's low-power FPGA hardware, enabling the company to offer complete edge AI solutions combining hardware acceleration with pre-trained machine learning models.
To transform Lattice from a pure-play FPGA company into a comprehensive silicon-plus-firmware platform provider for AI infrastructure. AMI provides platform firmware, BIOS, BMC firmware, and infrastructure manageability solutions that complement Lattice's control-plane FPGAs in data center and edge computing applications.