US Semiconductor Firm Bets on $1.65 Billion Acquisition of AI and Cloud Firmware

Lattice Semiconductor Corporation (Nasdaq: LSCC) announced on May 4 that it has signed a definitive agreement to acquire AMI, a provider of platform firmware and infrastructure management solutions for cloud and AI, for approximately $1.65 billion (about KRW 2.2 trillion). The transaction will consist of $1 billion in cash and roughly $650 million in Lattice common stock. By combining Lattice’s low-power FPGAs with AMI’s firmware and management solutions, the company aims to build an integrated security management and control platform for data centers, servers, AI and cloud markets. Lattice expects the deal to contribute immediately to gross margin, free cash flow and non-GAAP earnings per share, and to support its goal of exceeding $1 billion in annual revenue by Q4 2026. The company plans to complete regulatory approvals and other closing conditions by Q3 2026.

In its Q1 2026 results, also released on May 4, Lattice reported revenue of $170.9 million—up more than 40% year-over-year—and raised its Q2 revenue and EPS guidance. Following the earnings report and the AMI acquisition announcement, Lattice shares hit a new 52-week high on the Nasdaq. Securities firms including Stifel have maintained buy ratings and raised their price targets to around $130.

Founded in 1983 and headquartered in Hillsboro, Oregon, Lattice Semiconductor is a fabless company that supplies low-power FPGAs and design software to communications, computing, industrial and automotive markets. As security and power-efficiency demands grow in AI servers and cloud data-center infrastructure, competition has intensified around integrated solutions that encompass FPGA hardware and server firmware and management software—driving Lattice’s strategic acquisition of AMI.