After Philips and GE, Cree has also announced its permanent parting with LED and the lighting industry. 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. Cree commented that this transaction has further established the company’s strategic position by leading the industrial transformation from silicon to silicon carbide, as well as providing additional enhancement on the financial status of the company. In view of the aforementioned factors, Cree will continue its investment in the semiconductor field, and fully utilize growth opportunities that comprise of fields of alternative fuel vehicles, 5G, and industrial applications. Cree LED is one of the most powerful brands in the industry, and its product mix includes high efficiency 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. The diversified client foundation and global operation capability of SMART will facilitate Cree LED in continuously providing industry-leading products for clients.
