Semtech (SMTC) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Strategic announcements and acquisitions

• Announced acquisition of HieFo, an Indium Phosphide-based laser company, enhancing capabilities in high-efficiency lasers for optical transceivers and CPO/MPO modules.

• Recent tuck-in acquisition of a force sensing product from Qorvo, expanding the PerSe Sensing portfolio in high-end consumer devices.

• Ongoing divestiture process for the cellular module business, aiming to optimize the portfolio and focus on higher-margin core assets.

• Acquisition strategy is driven by customer needs and roadmap alignment, with prudent capital use and focus on differentiated solutions.

• Recent acquisition cost for HieFo was about $34 million, reflecting disciplined capital allocation.

Data center and product innovation

• Expanding presence in optical transceivers with new laser and driver solutions, targeting 800 Gb and 1.6T markets.

• Strong market share in single-mode 800 Gb optical transceivers, with LPO and MPO solutions ramping up.

• CopperEdge and ACC products offer significant power savings and extended reach, with growing customer adoption and revenue contribution expected next year.

• Redriver and linear equalizer solutions are gaining traction for high-speed signal integrity across multiple platforms.

• Industry transition from copper to optics is gradual; copper remains dominant for scale-up, while CPO is emerging for scale-out applications.

Supply chain and customer engagement

• Tight supply chain for optical transceivers anticipated, but proactive capacity planning and co-planning with customers provide buffer for the next 12–18 months.

• Co-planning process expanded from one to seven customers, improving forecast visibility and supply chain robustness.

• Growth in both 800 Gb and 1.6T segments supported by additional foundry capacity.

• Close collaboration with hyperscalers and platform architects ensures alignment with evolving data center requirements.