Why did Lattice Semiconductor's revenue drop sharply in Q4 2024?

Lattice Semiconductor's revenue dropped sharply in Q4 2024 primarily due to weakness in the Automotive and Industrial end markets and softness in Wireless Communication, as detailed below:

1. Automotive and Industrial End Markets: Lattice Semiconductor's revenue was negatively impacted by the weakness in the Automotive and Industrial end markets. Customers in these markets reduced their inventory levels, leading to a decrease in demand for LSCC's products. This inventory normalization and cyclic corrections have negatively affected LSCC's top-line growth.
2. Wireless Communication: The softness in Wireless Communication has been a major negative factor for LSCC's revenue. In the first half of 2024, LSCC reported a significant decline in revenues due to weaker demand in telecommunications infrastructure deployments and customers rebalancing their inventory levels. This trend likely continued into Q4 2024, contributing to the overall revenue drop.

In summary, Lattice Semiconductor's revenue drop in Q4 2024 was primarily driven by the weakness in the Automotive and Industrial end markets and the softness in Wireless Communication, leading to a decrease in demand for their products.