Yesterday (1), 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 scheduled later this year Renamed to Wolfspeed.
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 upon delivery; 125 million U.S. dollars will be paid due in 2023. In addition, based on the first full four quarters of revenue and gross profit performance of Cree LED after the completion of the delivery, Cree will also receive an contingent consideration (Earn-out payment) of 125 million US dollars, which will be paid in three-year seller bills.
Since the announcement of the transformation plan in 2018, Cree has successively divested Cree Lighting and Cree LED. Now it is a complete departure from the LED industry and fully invested in the semiconductor industry.
Cree CEO Gregg Lowe said that the completion of this transaction is an important milestone in Cree's transformation journey, and the company's strategic positioning has been further clarified-Cree will become a pure global semiconductor giant and be more capable of leading the industrial transformation from silicon to silicon carbide .
At present, Cree is continuing to expand the production capacity of silicon carbide. After the completion of the construction of the North Carolina headquarters materials 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 manufacturing plant. Production will start in 2022, when Cree's silicon carbide material performance 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 Jingdian and Longda on chip resources.