Semtech acquires foundry for $34M, shifts to fab-lite model; China sales hit 47%

Filed March 23, 2026 · Period ending January 25, 2026 · Compared to 10-K Mar 25, 2025 · ~2 min read

Key Changes

• high

  Acquired HieFo Corporation for $34M cash, transitioning from fabless to fab-lite manufacturing with internal foundries for data center interconnect products—a strategic shift toward vertical integration in high-value segments.

  Business: HieFo Acquisition verify on EDGAR →
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  Revenue grew 15% to $1.05B in FY2026 with data center sales up $81.4M; gross margin improved to 51.6% from 50.2%, driven by favorable product mix and overhead absorption across Signal Integrity and Analog Mixed Signal segments.

  MD&A: Financial Performance verify on EDGAR →
• high

  China revenue concentration increased from 43% to 47% of total sales, heightening exposure to U.S.-China trade tensions and regional demand volatility as nearly half of revenue depends on a single geography.

  Business: China Revenue verify on EDGAR →