title & date: page: 1 globalpress summit 2010 april 26, 2010

Title & Date: Page: 1

GLOBALPRESS SUMMIT 2010

April 26, 2010

Global Press Presentation Lattice Semiconductor ConfidentialPage: 2

SAFE HARBOR NOTICESAFE HARBOR NOTICE

This presentation contains forward-looking statements that involve estimates, assumptions, risks and uncertainties, including statements relating to our 2Q10 business outlook, the potential growth of various served markets, strong and consistent new product growth, continuing cost structure and reduction opportunities, and the potential growth of the programmable logic market. Lattice believes the factors identified below could cause actual results to differ materially from the forward-looking statements.

Estimates of future revenue are inherently uncertain due to the high percentage of quarterly "turns" business. In addition, revenue is affected by such factors as global economic conditions which may affect customer demand, pricing pressures, competitive actions, the demand for our Mature, Mainstream and New products, the ability to supply products to customers in a timely manner and our actions to restructure our distribution channel. Actual gross margin percentage, operating expenses and operating income could vary from the estimates contained herein on the basis of, among other things, changes in revenue levels, changes in product pricing and mix, changes in wafer, assembly, test and other costs, variations in manufacturing yields, the failure to sustain operational improvements, the effects of transitioning certain distributors from the sell-to to the sell-through business model, and compensation charges due to stock price changes. Any unanticipated declines in revenue or gross margin, any unanticipated increases in our operating expenses or unanticipated charges, including without limitation, restructuring charges or any impairment charges related to an other-than-temporary decline in the fair value of auction rate securities held in Long-term marketable securities, could adversely affect our profitability during the quarter.

In addition to the foregoing, other factors that may cause actual results to differ materially from the forward-looking statements herein include overall semiconductor market conditions, market acceptance and demand for our new and existing products, the Company's dependencies on its silicon wafer suppliers, the impact of competitive products and pricing, technological and product development risks, the compromised liquidity of the Company's auction rate securities, our ability to improve customer service by moving our warehouse to Singapore, our ability to improve our operational efficiencies by establishment of our Asia Operations Center, and the other risks that are described herein and that are otherwise described from time to time in our filings with the Securities and Exchange Commission. The Company does not intend to update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


AGENDA

Where Lattice Is Today• Chris Fanning, CVP & General Manager,

Low Density & Mixed Signal Solutions

Lattice’s Roadmap To The Future• Sean Riley, CVP & General Manager,

High Density Solutions

Lattice’s Financial Achievements• Bruno Guilmart, President & CEO

Question Time


ABOUT LATTICE SEMICONDUCTOR

• Founded (1983); IPO 1989 (NASDAQ: LSCC)

• Design and develop programmable semiconductor products, which allow the end customer to determine functionality

– FPGA, PLD, Mixed Signal

• Customers are primarily OEMs in the communications, computing, consumer, and industrial end markets

• Product development, manufacturing, and sales offices worldwide

• $194.4M revenue in 2009


Camera Wireless

WHERE LATTICE COMPETESLinking People Together

LCD TV Smartphone

Lattice continuing to differentiate in its traditional Communications, Computing, and Industrial markets

• Low cost• Low power• High convenience

Consumer is emerging as a good fit for PLD strengths• Reducing time to market• Mitigating ASIC development risk and cost• Integrating discrete components

Server


Source: iSuppli, “Core Silicon Market Tracker & Component AMFT – Q4 2009,” January 5, 2010

DIGITAL CAMERASPicture A New PLD Market

Lattice Product: MachXO 4000ZEFunction: Image Rotation Discrete Component IntegrationWhy We Won: Cost Reduction, Technical Support, Supply Chain

Year

2009

2013E

Volume

110Mu

130Mu


LCD TV Shipments (Mu)

0

50

100

150

200

250

2009E 2010E 2011E 2012E 2013E

Source: iSuppli, “Digital TV Semiconductor Q4 2009 Market Tracker,” January 13, 2010

CAGR’09 – ’13

15%

LCD TVHigh Growth In High Definition

Lattice Product: MachXOFunction: LED backlight controlWhy We Won: Price, High IO Count, Non-Volatility


SERVERSBig Iron Opportunities

Lattice Product: MachXOFunction: Clock Generation, Bus / Memory Processor InterfaceWhy We Won: Memory, PLLs, Price, Technical Support

Source: iSuppli, “Core Silicon Market Tracker & Component AMFT – Q4 2009,” January 5, 2010

Year

2009

2013E

Volume

7Mu

10Mu


Source: Unwired Insight, iSuppli, San Jose Business Journal – Cisco Systems, February 12, 2010

“20x increase in 3G traffic in the next 5 years”

– Unwired Insight

“Wireless data to double yearly through 2014”

– Cisco

“Wireless Comm to grow 10% annually through 2013”

– iSuppli

WIRELESSThe Appetite Is Still Growing

Key Lattice Product: LatticeECP3Functions: Baseband and Radio InterfacesWhy We Win: Low Power, High Value, Relevant IP


0

100

200

300

400

500

2009E 2010E 2011E 2012E

Source: Goldman Sachs, Frost & Sullivan

CAGR’09 – ’12

34%

Smartphone Shipments (Mu)

“Virtually all phones sold in the U.S. will be smart phones within 5 years”

– Frost & Sullivan

SMART PHONEWhere The World Is Going

Lattice Product: 4000ZEFunctions: Discrete Integration, Level Shifting, Data Bus ControlWhy We Won: Lower Power, Small Form Factor, Halogen Free Packaging


Wireless Smartphone

4000ZE ✓ ✓ ✓ ✓

MachXO ✓ ✓ ✓ ✓

Power Manager ✓ ✓ ✓

LatticeECP3 ✓ ✓

LatticeXP2 ✓ ✓

LATTICE HAS SOLUTIONS ACROSS THE SPECTRUM

15% 10M 10% 34%Units CAGR CAGR CAGR

Camera LCD TV

130M

Units

Server


THREE PROGRAMMABLE DIGITAL SEGMENTS

R&

D I

nv

es

tme

nt

/ S

up

po

rt

Ultra-High

Low

Ultra-High

Low

Pe

rfo

rma

nc

e /

De

ns

ity

Low DensityCustomer needs: cost & convenience

Examples: handhelds, LCD displays, control & glue logic

Mid-RangeCustomer needs: optimized blend of power and performance

Examples: wireless interfaces, security & surveillance

Ultra-HighCustomer needs: ultimate performance & density

Example: ASIC emulation, 100G optical switches


LATTICE DIGITAL ROADMAP

R&

D I

nv

es

tme

nt

/ S

up

po

rt

Ultra-High

Low

Mid-Range• Low Power• High Value

2007 2008 2009

ECP2/M90nm

Low Density• Low Cost• High Convenience• Channel Partnerships

Pe

rfo

rma

nc

e /

De

ns

ity

Non-VolatileNext Gen

Mid-RangeNext GenSCSC

90nm90nm

ECP365nm

Ultra-High

Low

Ultra-High

XO130nm

XP290nm

4KZE180nm

2010


Ultra-HighFPGA

Market w/outMid-Range

FPGAs

High Gross Margins

MID-RANGE PRESENTS SIGNIFICANT OPPORTUNITY

High

Low

Pe

rfo

rma

nc

e /

De

ns

ity

Medium Gross Margins

Low DensityFPGA

Fast SerDesHigh Speed I/O

DSP/MACsBig Memory

High Performance

No SerDesLower Speed I/O

Minimal DSPMinimal Memory

Low Performance


Ultra-HighFPGA

Market w/outMid-Range

FPGAs

High Gross Margins

MID-RANGE PRESENTS SIGNIFICANT OPPORTUNITY

High

Low

Pe

rfo

rma

nc

e /

De

ns

ity

Medium Gross Margins

Low DensityFPGA

Fast SerDesHigh Speed I/O

DSP/MACsBig Memory

High Performance

No SerDesLower Speed I/O

Minimal DSPMinimal Memory

Low Performance

Market withMid-Range

FPGAs

Low DensityFPGA

Mid-RangeFPGA

Ultra-HighFPGA

SerDesHigh Speed I/O

DSP/MACsBig Memory

Mid-Range Performance

Lower PriceLower Power


LATTICE MIXED SIGNAL ROADMAPExtending The Benefits Of Programmability

• Sequencing• Monitoring

• Sequencing• Monitoring• Hot-swap• Voltage Measurement • Trimming/ Margining

Power Manager I

2003 2006

Power Manager II

• Sequencing• Monitoring• Hot-swap• Voltage

Measurement • Trimming/

Margining• Reset Tree• NV Error Logging• System Interface

2010

Platform Manager

• Sequencing• Monitoring• Hot-swap• Voltage

Measurement • Trimming/

Margining• Reset Tree• NV Error Logging• System Interface• Fan Control• User Logic• Temperature

Monitoring• Current

Measurement

Next Gen

Platform Manager II


QUARTERLY REVENUE

Revenue ($M)

$0

$20

$40

$60

$80

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10F

~6-10%

+28%


$0

$4

$8

$12

$16

$20

$24

$28

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

CONSISTENT NEW PRODUCT REVENUE GROWTH

New products: LatticeECP2/M/3, LatticeXP2, MachXO, Power Manager II, ispClock A/D/S, ispMACH 4000ZE

Revenue ($M)

34% Quarterly Growth


LATTICE FPGA GAINING TRACTION

-15%

-10%

-5%

0%

5%

10%

15%

Actel Altera Lattice Xilinx

2009 / 08 FPGA Revenue Growth

Source: Company financials, Lattice estimates

FPGA Up 41% In 1Q10


PROFITABILITY ACCELERATINGStrong Balance Sheet

4Q09 1Q10 2Q10FRevenue $55.1 $70.4 6-10%COGS $24.6 $29.3GM 55.3% 58.5% 57-59%R&D $12.6 $14.7SG&A $13.3 $15.4Operating Income $4.5 $11.0Net Income $5.6 $11.1

Cash $164.5 $183.5Debt - -

$31M


• Focused on programmable logic opportunities where we have sustainable and differentiated market positions– Good product position in

large and growing markets– Differentiating with high-

value, low power solutions

• Strong and consistent new product growth

• Accelerating profitability– Strong balance sheet

SUMMARY

$0

$1

$2

$3

$4

$5

Stock Price

Jan. ‘09 Apr. ‘10

Title & Date: Page: 22

title & date: page: 1 globalpress summit 2010 april 26, 2010

Documents

unanticipated charges

new products

forwardlooking statements

product pricing

estimates of future

consistent new product

customer demand

operating expenses