Cree, Inc. (Nasdaq: CREE) announced today that it has completed the sale
of its Lighting Products business unit (“Cree Lighting”) to IDEAL
INDUSTRIES, Inc. The transaction includes the LED lighting fixtures,
lamps and corporate lighting solutions business for commercial,
industrial and consumer applications. The transaction, which was
previously announced on March 15, has closed and is effective today.
“This represents a pivotal chapter for Cree as we sharpen our focus to
become a semiconductor powerhouse in silicon carbide and GaN
technologies,” said Gregg Lowe, CEO of Cree. “Cree’s technologies are
helping to power major transitions in our economy, whether it’s the
automotive industry’s transition to electric vehicles or the
telecommunications sector’s move to faster 5G networks. Our leadership
in silicon carbide and GaN positions us well to help customers improve
performance and realize greater efficiencies.”
The company will use the proceeds from the sale to accelerate the growth
of Wolfspeed, its Power and RF business, and expand its semiconductor
operations. The company recently announced plans to invest up to $1
billion in the expansion of its silicon carbide capacity to meet the
growing demand for silicon carbide and GaN-on-silicon-carbide
technologies. The expansion includes the development of a
state-of-the-art, automated 200mm silicon carbide fabrication facility
and a materials mega factory at its U.S. campus headquarters in Durham,
N.C., allowing wide bandgap semiconductors that enable the dramatic
technology shifts underway within the automotive, communications
infrastructure and industrial markets.
About Cree, Inc.
Cree is an innovator of Wolfspeed® power and radio frequency
(RF) semiconductors and lighting class LEDs. Cree’s Wolfspeed product
families include silicon carbide materials, power-switching devices and
RF devices targeted for applications such as electric vehicles, fast
charging, inverters, power supplies, telecom and military and aerospace.
Cree’s LED product families include blue and green LED chips,
high-brightness LEDs and lighting-class power LEDs targeted for indoor
and outdoor lighting, video displays, transportation and specialty
lighting applications.
For additional product and Company information, please refer to www.cree.com.
Forward Looking Statements:
This press release contains forward-looking statements involving risks
and uncertainties, both known and unknown, that may cause Cree’s actual
results to differ materially from those indicated in the forward-looking
statements. Actual results, including with respect to our plans to grow
the Wolfspeed business and our capacity expansion, could differ
materially due to a number of factors, including the risk that
transitions in the automotive and telecommunications industries do not
advance as we expect; risks associated with the ramp-up of production of
our new products; our ability to complete development and
commercialization of products under development for the automotive,
communications infrastructure and industrial markets; the rapid
development of new technology and competing products that may impair
demand or render our products obsolete; the potential lack of customer
acceptance for our products; the risk we may encounter delays or other
difficulties in completing development of our new facility and ramping
up production on time, at the projected costs or at all; risks
associated with the transition of production from 150mm to 200mm wafers;
the risk that we may not be able to manufacture products at these
facilities with sufficiently low cost to offer them at competitive
prices or with acceptable margins; and other factors discussed in our
filings with the Securities and Exchange Commission (SEC), including our
report on Form 10-K for the fiscal year ended June 24, 2018, and
subsequent reports filed with the SEC. These forward-looking statements
represent Cree’s judgment as of the date of this release. Except as
required under the U.S. federal securities laws and the rules and
regulations of the SEC, Cree disclaims any intent or obligation to
update any forward-looking statements after the date of this release,
whether as a result of new information, future events, developments,
changes in assumptions or otherwise.
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