What Lattice Semiconductor Corporation told the SEC could break it.

Lattice's foundry and OSAT partners are concentrated in Taiwan and the broader Asia region; deterioration in Taiwan-China relations could disrupt its third-party manufacturing supply chain.

“Any deterioration in the relations between Taiwan and China, and other factors affecting military, political or economic conditions in Taiwan or elsewhere in Asia, could adversely impact our third-party manufacturing partners and suppliers located in the region, which could disrupt our business operations.”

Foreign sales were 83% of FY2025 revenue, with Asia alone at 67.6% ($353.7M of $523.3M), concentrating demand exposure in the region.

“The composition of our revenue by geography is presented in the following table: Year Ended January 3, December 28, December 30, % Change in (In thousands) 2026 2024 2023 2025 2024 Asia $ 353,699 67.6 % $ 332,747 65.3 % $ 443,765 60.2 % 6.3 % (25.0 )% Americas 102,758 19.6 101,217 19.9 145,839 19.8 1.5 (30.6 ) Europe 66,805 12.8 75,437 14.8 147,550 20.0 (11.4 ) (48.9 ) Total revenue $ 523,262 100.0 % $ 509,401 100.0 % $ 737,154 100.0 % 2.7 % (30.9 )%”

Existing 50% Section 301 tariff on certain Chinese semiconductor items (from early 2025), with an additional Section 301 tariff on Chinese semiconductors to take effect June 23, 2027 following a USTR finding.

“In late 2025, the U.S. Trade Representative concluded following an additional Section 301 trade investigation that China engaged in unfair trade acts, policies, and practices with respect to the semiconductor industry, and therefore will implement an additional Section 301 tariff on Chinese semiconductors, in addition to the existing 50% Section 301 tariff, beginning on June 23, 2027.”

A January 2026 Section 232 proclamation imposed an immediate 25% tariff on certain advanced semiconductor articles, with broader semiconductor/equipment tariffs signaled — raising input costs for Lattice's foreign-fabricated products.

“In January 2026, the President issued a proclamation under Section 232 imposing an immediate 25% tariff on certain advanced semiconductor articles and announcing that broader tariffs on semiconductors, semiconductor manufacturing equipment, and derivative products may follow.”

Lattice's distribution model is highly concentrated: in FY2025 two distributors accounted for ~69% of total revenue, and one distributor (B) was 62% of net accounts receivable.

“In fiscal 2025, revenue attributable to sales to distributors accounted for 84% of our total revenue, and two distributors accounted for approximately 69% of total revenue.”

China's export controls on gallium, germanium and other rare earth materials to the U.S. could cause shortages of key materials required by Lattice's suppliers and foundry partners.

“China responded by imposing or threatening to impose significant trade measures, including tariffs on many items imported from the United States and export controls restricting the export of gallium, germanium, and other rare earth materials to the United States.”

While Lattice maintains multiple foundry relationships, certain of its products are sourced from a single foundry, and switching foundries carries significant cost and production/shipment delays.

“We rely on a limited number of foundries for our wafer purchases. We seek to mitigate the concentration of supply risk by establishing, maintaining, and managing multiple foundry relationships; however, certain of our products are sourced from a single foundry and changing from one foundry to another can have a significant cost, or create delays in production or shipments, among other factors.”