The sale of Cree LED business is completed and will be renamed Wolfspeed
Cree announced that the sale of the LED business (Cree LED) has been officially completed. SMART Global Holdings, Inc. will authorize and incorporate the Cree LED brand name into the SMART business portfolio, and Cree will also be called Wolfspeed later this year.
According to the terms of the transaction, Cree will receive a price of 300 million U.S. dollars, of which 50 million U.S. dollars will be paid in cash when re-delivery; 125 million U.S. dollars will be paid due in 2023. In addition, based on Cree’s revenue and gross profit performance for the first four quarters remaining after the LED delivery, Cree received a contingent consideration (surplus payment) of US$125 million, which was paid in three-year nominal bills.
Since the announcement of the transformation plan in 2018, Cree has successively replaced Cree Lighting and Cree LED. Now it is a complete bid farewell to the LED industry and comprehensive promotion of the semiconductor industry.
Gregg Lowe, CEO of Cree, said that the completion of this transaction is an important change in Cree's transformation journey, and the company's strategic positioning has further changed. Cree will become a pure global semiconductor giant, and has the ability to lead from silicon to silicon carbide. Industrial Transformation.
At present, Cree is continuously expanding the production capacity of silicon carbide. After the completion of the construction of the North Carolina Headquarters Material Plant and the Massey Mountain Mohawk Valley Plant in New York, they will become the world's largest silicon carbide manufacturing plant and the first 200mm silicon carbide. The manufacturing plant is expected to be put into operation in 2022, when the performance of Cre silicon carbide materials and wafer manufacturing capacity will be greatly enhanced.
It is also worth mentioning that SMART Global Holdings, the buyer of Cree LED, is gradually transitioning to sapphire, and is actively cooperating with Taiwanese manufacturers such as Epistar, Ronda and other chip resources.