Lattice Semiconductor is purchasing AMI (American Megatrends Inc.) for $1.65 billion in cash and stock, marking a major consolidation in the UEFI/BIOS firmware market. The acquisition leaves Insyde Software as the only independent firmware developer, as AMI dominates motherboard and hardware maker adoption with its BIOS technology.

The deal reflects growing consolidation in the firmware space, following Lenovo's recent purchase of Phoenix Technologies' BIOS assets. Lattice, known for FPGA solutions competing with AMD's Xilinx and Intel's Altera, aims to help customers deploy complex systems faster through its 'everywhere companion chip strategy.' However, the synergy between chipmaking and firmware isn't immediately clear.

As the largest UEFI/BIOS vendor, AMI's technology powers nearly all mainstream motherboard manufacturers and x86/x64 hardware makers. The acquisition raises questions about potential changes for AMI's existing customer base, particularly given its unique market position. American Megatrends will become a subsidiary of Lattice, maintaining its established relationships while operating under new ownership.