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We are pleased that Lattice Semiconductor Corporation is establishing its first Asian Operations Center in Singapore. This new center is testimony to Singapore's reputation as a preferred location for companies to orchestrate their pan-Asian operations, and where they innovate and create new value to grow their top line, said Mr. Damian Chan, Director, Electronics, Singapore Economic Development Board.



While the recent relocation of its warehousing and distribution facilities to Singapore is expected to save Lattice approximately 1 million USD each year in shipping costs, the primary reason for establishing the Asia Operations Center is to move Lattice closer to its customers and supply chain partners. Lattice's business in Asia has been growing steadily, and accounted for 70% of its revenue in the fourth quarter of 2009, compared to 35% just seven years ago. In addition, all of Lattice's Wafer Fabs and Assembly & Test partners are in Asia. The establishment of the Asia Operations Center will result in the operational alignment of Lattice's supply chain, improved efficiency in working with the supply chain and an improved focus on cost reduction.



It just makes good business sense to move our Asia operations and warehouse closer to our critical supply chain activities and to our customers, said Mr. Bruno Guilmart, Lattice President and CEO. The shorter we can make the distance between our products and our customers, the more responsively and efficiently we can serve them.



Lattice evaluated several locations throughout Asia for its new Operations Center. According to Lattice CFO Michael Potter, sites were judged against seven criteria:



* Import / export laws

* Transportation links

* Mature legal system

* IP protection

* Workforce availability & skills

* Office space availability

* Proximity to customers as well as fab, wafer and test partners



The evaluation process was very comprehensive and very demanding, said Michael Potter, Lattice CFO. Each of the sites offered certain advantages, but in the end Singapore provided us with the best match to our requirements. It has been a pleasure to collaborate with the Singapore Economic Development Board, and we look forward to a long and mutually beneficial relationship.



The 421 square meter Lattice Asia Operations Center is opening with 17 employees, and initially will manage production, packaging and test development, reliability and quality assurance for Lattice products throughout Asia. The Operations Center is expected to expand within two to three years to approximately 40 employees.