Cree sells lighting business for $310 million to strengthen RF/power semiconductor business
Recently, Cree announced the sale of its lighting business to IDEAL INDUSTRIES for a transaction value of US$310 million, including commercial LED, lighting and corporate lighting solutions businesses and industrial and consumer applications.
According to Cree, the sale is aimed at focusing more on strengthening RF business, Silicon Carbide technology and GaN technology, strengthening the company's competitive advantage in the SiC and GaN markets to meet the needs of electric vehicles, 5G and other applications. The sale will allow Cree to become a more targeted semiconductor company, providing more capital for Wolfspeed (Cree's core and RF business), investing more resources and providing additional resources to expand its semiconductor business.
Cree CEO Gregg Lowe said that Cree has made significant progress in the past 18 months, strengthening its business focus, not only to strengthen silicon carbide and GaN technology, but also to make Wolfspeed more than double. In addition, the acquisition of Infineon's RF business has doubled Cree's silicon carbide manufacturing capabilities.
Lowe further stated that through this transaction, Cree will receive a lot of resources to help accelerate the growth of Wolfspeed and thus consolidate its market position. The most important thing is to increase the focus on core business and accelerate the adoption of silicon carbide.