Lattice Semiconductor has signed a definitive agreement to acquire AMI for $1.65 billion in a deal that combines Lattice’s low-power FPGAs with one of the most well-known firms in platform firmware and management infrastructure for servers, cloud, and AI. The transaction, announced on May 4, 2026, is expected to close in the third quarter of this year, pending regulatory approvals and customary closing conditions.
This move is significant because it targets a less visible yet increasingly critical layer of data centers: platform control. Modern servers no longer rely solely on CPUs, GPUs, memory, and networking. They also require auxiliary chips, firmware, telemetry, remote management, power control, secure boot, and tools capable of keeping thousands of systems operational with minimal downtime. Lattice aims to strengthen precisely that area.
A purchase to unify programmable hardware and firmware
Lattice will pay $1 billion in cash and approximately $650 million in the company’s common stock. The deal has been structured as an equity transaction with no net cash or debt, with customary adjustments. According to documentation filed by Lattice, the number of shares issued will depend on the pre-close stock price and will range between about 5.2 million and 6.1 million shares, including certain stock-based incentives for AMI employees valued at approximately $57.3 million based on the May 1, 2026, closing price.
AMI expects to generate over $200 million in revenue in 2026. For Lattice, the acquisition should immediately be positive for gross margin, free cash flow, and non-GAAP earnings per share. The company also states that the transaction supports its goal of reaching an annualized revenue rate of over $1 billion by the end of 2026.
The industrial logic is clear. Lattice is known for its low-power FPGAs used as companion chips in communications, computing, industrial, automotive, and embedded electronics applications. These devices enable customization of control, security, or connectivity functions without redesigning the entire system. Meanwhile, AMI brings firmware and management software to a critical server layer: BIOS/UEFI, BMC, out-of-band control, telemetry, and platform management.
AMI highlights families like Aptio, associated with UEFI/BIOS firmware, and MegaRAC, focused on BMC firmware for server management. For example, MegaRAC OneTree is built on the OpenBMC architecture and supports platforms from Intel, AMD, NVIDIA, Ampere, ASPEED, Nuvoton, and other providers, with features like Redfish, PLDM, MCTP, RAS, and telemetry.
Why it matters for AI data centers
AI has revolutionized server design. Training and inference systems are no longer relatively homogeneous machines with just a CPU and a few disks. They now combine accelerators, GPUs, DPUs, high-speed NICs, high-bandwidth memory, fast storage, advanced cooling, and numerous sensors and operational policies.
This complexity increases the importance of platform management. A BMC allows for server management even when the OS is unresponsive. Firmware defines how the machine boots, initializes components, enforces security controls, and exposes health, power, and temperature signals. While it may seem like a minor technical matter in a small cluster, in large-scale installations with thousands of nodes, it becomes central to availability and operational cost.
The Lattice and AMI combination aims to fill this gap. Lattice talks about creating a comprehensive, secure management and control platform that can accelerate time-to-market for clients and expand their solutions at the system level. The company also emphasizes maintaining an open and multi-vendor compatible approach—a critical point for server manufacturers, hyperscalers, and cloud operators who do not want to be locked into a single silicon supplier.
This acquisition may also help Lattice engage earlier in the design cycle. By contributing to firmware, control, security, and remote management, a company can influence architectural decisions from the early stages of server development—not just when selecting specific components. This has commercial value: it deepens relationships with OEMs, ODMs, cloud providers, and infrastructure manufacturers for AI.
Lattice enters with strong financial momentum
The announcement coincided with Lattice’s Q1 2026 financial results. The company reported revenues of $170.9 million, a 42.2% increase compared to the same period last year. GAAP gross margin was 68.8%, while non-GAAP gross margin reached 70%. GAAP net income was $21.8 million, or $0.16 per diluted share; on a non-GAAP basis, diluted EPS was $0.41.
The Compute and Communications division achieved record revenues, according to the company, while Industrial and Embedded grew over 20% compared to the previous quarter. For Q2 2026, Lattice expects revenues between $175 million and $195 million and a non-GAAP gross margin of approximately 70%, with a one percentage point variation either way.
This financial context explains the deal size. AMI is not a small acquisition for Lattice; it represents a strategic move to move up the value chain—from low-power programmable chips to broader control, security, and management solutions. It’s also a response to a market where server designs are becoming more modular and heterogeneous.
The key challenge will be integration. Lattice must preserve AMI’s neutrality, maintain trust within an ecosystem with numerous silicon vendors, and avoid giving customers the impression that they are closing a layer that is valued precisely for its interoperability. The company is aware of this and has reiterated its commitment to chip- and solution-agnostic offerings.
The acquisition of AMI isn’t as high-profile as a major CPU or GPU manufacturer deal, but it addresses an area increasingly critical in next-generation data centers. In AI infrastructure, peak performance depends not just on accelerators but also on reliable system boot, remote management, secure updates, and scalable operation across thousands of nodes without manual intervention.
Frequently Asked Questions
How much will Lattice pay for AMI?
Lattice will pay $1.65 billion, split roughly evenly between $1 billion in cash and approximately $650 million in Lattice common stock.
When will the acquisition close?
Expected in the third quarter of 2026, subject to regulatory approvals and usual closing conditions.
What does AMI bring to Lattice?
AMI provides platform firmware, BIOS/UEFI solutions, BMC software, and management tools for servers, cloud, and AI.
Why is this deal important for data centers?
Because it strengthens the management, security, control, and monitoring layers of servers—an essential component as AI platforms incorporate more components, consume more energy, and become more operationally complex.
via: latticesemi