About Semtech

Semtech Corporation operates as a high-performance semiconductor, IoT systems and Cloud connectivity service provider. The company designs, develops, manufactures, and markets a wide range of products for commercial applications, the majority of which are sold into the infrastructure, high-end consumer and industrial end markets. Infrastructure: Data centers, passive optical networks (‘PON’), base stations, optical networks, servers, carrier networks, switches and routers, cable modems, wireless local area network (‘LAN’) and other communication infrastructure equipment. High-End Consumer: Smartphones, tablets, wearables, desktops, notebooks, and other handheld products, wireless charging, set-top boxes, digital televisions, monitors and displays, digital video recorders and other consumer equipment. Industrial: IoT applications, analog and digital video broadcast equipment, video-over-IP solutions, automated meter reading, smart grid, wireless charging, medical, security systems, automotive, industrial and home automation and other industrial equipment. The company’s end customers for its silicon solutions are primarily original equipment manufacturers (‘OEMs’) that produce and sell technology solutions. The company’s IoT module, router, gateways and managed connectivity solutions ship to IoT device makers and enterprises to provide IoT connectivity to end devices. On January 12, 2023, the company, through one of its wholly-owned subsidiaries, completed the acquisition of all the issued and outstanding common shares of Sierra Wireless, Inc., a corporation existing under the Canada Business Corporations Act (‘Sierra Wireless’). Business Strategy The company’s strategies are to leverage its rare analog and mixed-signal design expertise; continue to release proprietary new products, achieve new design wins and cross-sell products; focus on fast-growing market segments and regions; leverage outsourced manufacturing capacity; and build new IoT solutions that combine Cellular and LoRa technology. Products and Technology The company designs, develops, manufactures, and markets high-performance analog and mixed-signal semiconductors and advanced algorithms, as well as wireless semiconductors, connectivity modules, gateways, routers and connected services for IoT. Segments The company operates through four reportable segments: Signal Integrity, Advanced Protection and Sensing, IoT System, and IoT Connected Services. Signal Integrity The company designs, develops, manufactures, and markets a portfolio of optical data communications and video transport products used in a wide variety of infrastructure and industrial applications. The company’s comprehensive portfolio of integrated circuits (‘ICs’) for data centers, enterprise networks, PON, and wireless base station optical transceivers and high-speed interfaces ranges from 100Mbps to 400Gbps and supports key industry standards, such as Fibre Channel, Infiniband, Ethernet, PON and synchronous optical networks. The company’s video products offer advanced solutions for next generation high-definition broadcast applications, as well as highly differentiated video-over-IP technology for professional audio video (‘Pro AV’) applications. Advanced Protection and Sensing The company designs, develops, manufactures, and markets high-performance protection devices, which are often referred to as transient voltage suppressors (‘TVS’) and specialized sensing products. TVS devices provide protection for electronic systems where voltage spikes (called transients), such as electrostatic discharge, electrical over stress or secondary lightning surge energy, can permanently damage sensitive ICs. The company’s portfolio of protection solutions includes filter and termination devices that are integrated with the TVS device. The company’s products provide robust protection while preserving signal integrity in high-speed communications, networking and video interfaces. These products also operate at very low voltage. The company’s protection products can be found in a broad range of applications, including smart phones, LCD and organic light-emitting diode TVs and displays, set-top boxes, monitors and displays, tablets, computers, notebooks, base stations, routers, automobile and industrial systems. The company’s unique sensing technology enables proximity sensing and advanced user interface solutions for the company’s mobile and consumer products. IoT System The company designs, develops, manufactures, and markets a portfolio of specialized radio frequency products used in a wide variety of industrial, medical and communications applications. The company’s wireless products, which include its LoRa devices and wireless radio frequency technology (‘LoRa Technology’), feature industry leading and longest range industrial, scientific and medical radio, enabling a lower total cost of ownership and increased reliability. These features make these products particularly suitable for machine-to-machine and IoT applications. The company also designs, develops, and markets power product devices that control, alter, regulate, and condition the power within electronic systems focused on the LoRa and IoT infrastructure segment. The highest volume product types within this category are switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging. The company also offers a comprehensive product portfolio of IoT solutions that enable businesses to connect and manage their devices, collect and analyze data, and improve decision-making. The portfolio includes a wide range of modules, gateways, routers, and connected services that are designed to meet the specific needs of different industries and applications. Sierra Wireless' modules are available in a variety of form factors and connectivity options, including LTE-M, NB-IoT, 5G, and LoRa; and can be integrated into an array of devices and systems. The company’s gateways and routers are designed to provide reliable and secure connectivity for IoT devices, while the company’s connected services enable businesses to manage devices and connectivity so businesses can navigate the complex IoT landscape and realize the full potential of connected devices. IoT Connected Services The company designs, develops, operates, and markets a portfolio of connected services used in a wide variety of industrial, medical and communications applications. The company’s connected services include wireless connectivity and cloud-based services for customers to deploy, connect, and operate their end applications. The company’s services have been purpose-built for IoT applications and include features, such as SIM and subscription management, device and data management, geolocation support, as well as reporting and alerting that can be configured or tailored to a variety of IoT use cases. Divestiture On May 3, 2022, the company completed the divestiture of its high reliability discrete diodes and assemblies business (the ‘Disposal Group’) to Micross Components, Inc. Semtech End Markets The company’s products are sold primarily to customers in the infrastructure, high-end consumer and industrial end markets. Seasonality The company’s net sales are subject to some seasonal variation. The company’s net sales also have been affected by the cyclical nature of the semiconductor industry, and typically the fourth fiscal quarter (year ended January 2023) tends to be softer in demand as compared to the company’s other fiscal quarters. Sales and Marketing The company has direct sales personnel located throughout North America, Europe, and the Asia-Pacific who manage the sales activities of independent sales representative firms and independent distributors. The company operates internationally through its foreign subsidiaries. Semtech (International) AG and certain other foreign subsidiaries serve the European and Asian markets. Semtech (International) AG and other certain foreign subsidiaries also maintain branch offices, either directly or through one of their wholly-owned subsidiaries, in multiple countries or territories. Semtech Canada Corporation serves the Canadian market for most of the products from the company’s Signal Integrity Products Group from its headquarters in Burlington, Ontario. Sierra Wireless, Inc. also serves the Canadian market for most of the products from the company’s IoT System Products Group and its IoT Connected Services Group from its headquarters in Richmond, British Columbia. Independent representatives and distributors are also used to serve customers throughout the world. Some of the company’s distributors and sales representatives also offer products from its competitors, as is customary in the industry. Customers As a result of the breadth of the company’s products and markets, the company has a broad and balanced range of customers, such as: Infrastructure: Accelink Technologies Corporation; Alibaba Group Holding, Ltd.; Alphabet Inc.; Dipper Optics Technology, Ltd.; Cisco Systems, Inc.; Ericsson; Hewlett-Packard; HGGenuine Optics Tech Co.,Ltd; Hisense Co., Ltd.; Lumentum Holdings Inc.; Nokia Corporation; Samsung Electronics Co., Ltd.; Sumitomo Electric; and ZTE Corporation. High-End Consumer: Future Electronics Inc.; LG Electronics Inc.; Quanta Computer; Samsung Electronics Co., Ltd.; Sharp Corporation; and Vivo Technology Co., Ltd. Industrial: Arrow Electronics Inc.; Digi-Key Electronics; Future Electronics Inc.; Helium; Honeywell Inc.; Itron, Inc.; Panasonic Corp; Raytheon Company; Rockwell Automation; Sharp Corporation; Sonova International; Sony Corp; and Symmetry Electronics. The company’s customers include major OEMs and their subcontractors in the infrastructure, high-end consumer and industrial end markets. In fiscal years 2023, the company’s customers, Trend-tek Technology Ltd. (and affiliates); Frontek Technology Corporation (and affiliates); CEAC International Ltd. (and affiliates); and Arrow Electronics (and affiliates), that accounted for more than 10% of its net sales. In fiscal years 2023, the company’s customers, Frontek Technology Corporation (and affiliates) and CEAC International Ltd. (and affiliates), that represented at least 10% of the company’s total net receivables. Strategy The company’s strategy is to outsource most of the company’s manufacturing functions to third-party foundries, assembly, test contractors and electronics manufacturing services (‘EMS’) partners. Intellectual Property and Licenses The company has been granted 306 U.S. patents and 440 foreign patents and has numerous patent applications pending with respect to the company’s products and to technologies associated with the company’s business. The expiration dates of issued patents range from 2023 to 2041. The company has registered many of its trademarks in the U.S. and in various foreign jurisdictions. The company has registered, or is in the process of registering, the company’s SEMTECH and other trademarks in many jurisdictions. In one location the SEMTECH trademark is prohibited, but the company is permitted to use its Semtech International trade name. Product Development and Engineering Expenses The company’s product development and engineering expenses were $167.5 million for the year ended January 29, 2023 (fiscal year 2023). History Semtech Corporation was founded in 1960. The company was incorporated in Delaware in 1960.