How does your LoRa® technology, developed by Semtech, impact the everyday lives of consumers, especially in smart homes and offices?
LoRa technology, which stands for “Long-Range” is a low-power, long-range connectivity solution, and is one of Semtech's signature innovations. It is designed to enable efficient communication between devices over long distances while consuming minimal power. For instance, a sensor using LoRa can be installed in a variety of applications—whether in smart cities, utility meters, or asset tracking—and can operate for up to 10 years on a single battery due to its power efficiency. This sensor transmits signals to a gateway, which then connects to a network, allowing seamless data collection and communication. In practical terms, this technology transforms daily life by automating tasks that once required manual intervention. For example, with LoRa, you no longer need someone to physically read your electricity, water, or gas meters. The data is automatically collected and transmitted. LoRa's long-range capabilities also extend to remote locations, such as a cabin in the forest, where traditional Wi-Fi may not be available. This makes it possible to monitor and control devices like thermostats or refrigerators from afar, ensuring convenience and connectivity in even the most isolated areas.
Why is cloud technology becoming increasingly important for Semtech, and how do your solutions contribute to this growing field?
Our role in this space is centered on providing low-power, low-latency connectivity solutions using our analog and mixed-signal technology. As the demand for cloud services increases, so does the need for efficient and reliable network connectivity. The key components of AI and data centers—compute, memory, and network connectivity—are all areas where Semtech contributes significantly. Our chips enable high-bandwidth, low-latency network connectivity, which is crucial as the volume of data processed by data centers continues to grow. Companies like NVIDIA, Intel, and AMD focus on the compute side with GPUs and CPUs, while others like Micron and Samsung handle the memory aspect. Semtech's unique offering lies in our ability to enhance network connectivity with minimal power consumption and delay.
How does Semtech’s AirLink® XR60, the world’s smallest rugged 5G router, fit into the broader trends of electrification and generative AI?
While it is not directly linked to data centers, the AirLink product line plays a critical role in mission-critical applications, in markets such as public safety, public transit, oil and gas, IoT and utilities. This technology is particularly valuable in scenarios where reliable connectivity is essential, such as for utility companies or emergency services. For instance, the top 20 utility companies in the US rely on our routers for consistent communication, even in remote areas. The XR60’s ability to connect through multiple carriers and channels ensures that, no matter where you are, there is always a way to stay connected. As trends like electrification and generative AI continue to evolve, the need for reliable, robust connectivity solutions like the AirLink XR60 will only grow.
What opportunities and challenges does Semtech face in terms of network security and reliability, especially in light of recent events like the CrowdStrike outage?
In today’s increasingly connected world, the convenience of connectivity is matched by the growing need for network security and reliability. Semtech’s AirLink XR60, for example, addresses these concerns by offering multiple ways to connect to the network, ensuring robustness and redundancy. This is crucial in mission-critical applications like public safety, utilities, and public transit, where uninterrupted connectivity is non-negotiable. If one carrier or connection is compromised, the device can switch to another, maintaining continuous operation. However, while redundancy improves overall network resilience, it’s important to acknowledge that no system is entirely immune to disruptions. The key is to build systems that are as resilient as possible, providing multiple layers of security and connectivity.
How do you plan to leverage opportunities in the APAC region while being mindful of the changing geopolitical environment?
The complexity of today’s world, particularly regarding supply chain resiliency, is a top priority for us. Semtech operates using a fabless model, with fabrication facilities primarily in the U.S. and Taiwan. However, after wafer fabrication, we rely on backend processes in Southeast Asia, including Taiwan, Malaysia, and Vietnam. To ensure business continuity, we maintain redundancy in many of our products’ manufacturing process, with two distinct routes for fulfillment. This strategy allowed us to meet customer demand effectively during the challenges of 2020 through 2022, minimizing delinquencies by having a robust and redundant supply chain. APAC is not just crucial for our supply chain; it is also a significant market due to the region's emerging economies. While the U.S. leads in AI, other technologies like consumer electronics are booming in APAC, where we provide advanced solutions such as circuit protection and proximity sensing.
In your view, what will the world look like in three years, and how will Semtech's innovations contribute to this change?
While predicting the future can be challenging, one trend is clear: we will generate and consume more data than ever before. Currently, only about 1.5% of data is processed, but advancements in AI and large language models will enable us to process data more quickly and extract greater value from it. This will lead to new ways of living and working, significantly different from today.
Semtech is well-positioned to provide the necessary infrastructure, from transporting data to ensuring its secure and efficient processing. Connectivity technologies like 5G, 6G, and beyond will be crucial, not for voice services, which have been adequate since 2G, but for handling the massive amounts of data required by IoT and other emerging technologies. In three years, I see Semtech continuing to innovate and lead in providing the high-bandwidth, low-latency connections that will power our increasingly connected world.
What are some key milestones we can expect from Semtech in the next six to twelve months, particularly regarding innovation and new product launches?
Semtech has a strong technological foundation and a clear understanding of industry needs, which we will continue to address through innovation. One of our key focuses is on increasing bandwidth to meet the growing demand for data. For example, we recently demonstrated 200 gigabit per second per lane bandwidth using active copper cable and linear pluggable optics—double the current state-of-the-art bandwidth. The next generation will likely achieve 400 gigabits per second per lane, further enhancing data center connectivity.
In the IoT space, our AirLink products, which already support 5G, will continue to evolve. Future iterations may include even more robust connectivity options, such as integrating satellite communication and sub-gigahertz frequencies. We are also exploring acquisition opportunities to fill gaps that internal R&D may not cover. By adding adjacent technologies to our core competencies, we can accelerate our growth and strengthen our competitive position. The industry is moving rapidly, but with our intellectual property, talented workforce, and strategic acquisitions, we are well-equipped to lead the next wave of innovation.
