CREE annouced to sell of its LED business for further transformation to become a global semiconductor leader

It seems that the news is not good for some world-famous LED chips suppliers in recent years. After Philips and Osram, CREE has also sold off its LED and lighting business later this year.

Cree announced on October 20th that the company has reached a final agreement with SMART Global Holdings, Inc., and plans to sell its LED department (Cree LED) to SMART for US$300 million, which includes an advance of US$50 million, a deferred payment of US$125 million, and an earn-out of US$125 million.

On October 20th, Cree had made a final agreement with SMART Global Holdings, Inc.,, during the transaction, CREE will sell its LED department to Smart for totally US$300 million.

Cree LED is one of the most powerful brands in the LED industry, and its products range covers high power LED chips and high performance LED components. SMART is a leading global enterprise in dedicated memory, storage, and high-performance computing solutions that has been serving in the electronics industry for over 30 years. 

This transaction requires the approval of the regulatory authority and the satisfaction of customary closing conditions, which is expected to complete in the first quarter next year.

This sales of LED product department means that Cree has been in further transformation than before. A prosperous development is still seen in the compound semiconductor market in terms of silicon carbide and gallium nitride. Cree is firmly determined to become a global semiconductor leader by further accelerating the applications of silicon carbide. Cree said that this transaction will not only strengthen its strategic position by leading the industrial transformation from silicon to silicon carbide but also help enhance its financial status for its investment in the semiconductor, other market opportunities such as market of alternative fuel vehicles,5G and industrial applicaitons will also be grasped.