Cree recently announced that the company expects to officially change its name to Wolfspeed at the end of 2021.
Cree said, “Our team’s commitment to innovation and beyond possible limits will remain unchanged. As a global leader in the silicon carbide SiC industry, we are ready to enable pioneering, energy-efficient changes in the future. !”
As a leading company in the field of silicon carbide (SiC), Cree Wolfspeed’s product portfolio includes silicon carbide (SiC) materials, power devices, and radiofrequency devices, which are widely used in electric vehicles, fast charging, inverters, power supplies, telecommunications, military, and aviation Aerospace and other fields.
As early as September 2015, Cree had split its Power & RF division (Power&RF) into an independent company-Wolfspeed.
In 2019, Cree also announced that it will invest US$1 billion to expand SiC silicon carbide production and build the world’s largest SiC manufacturing plant in New York State, United States, thereby increasing its use of Wolfspeed’s silicon carbide (SiC) and gallium nitride (GaN) businesses. Capacity.
In order to further tilt its business focus to the compound semiconductor field, Cree has begun to sell LED-related businesses in the past two years.
Cree was founded in 1987 and listed on the Nasdaq exchange in 1993. It is a well-known manufacturer and industry leader in global LED epitaxy, chips, packaging, LED lighting solutions, compound semiconductor materials, power devices, and radiofrequency.
On March 15, 2019, Cree announced the sale of its LED lighting division (Cree Lighting) to Ideal Industries of the United States for US$310 million. The business sold includes commercial LED lighting fixtures and corporate lighting solutions.
Through this business divestiture, Cree continues to focus on the compound semiconductor RF and power application market to meet the market needs of 5G communications and new energy vehicles.
For Cree’s move, it is not difficult to understand. First of all, LED lighting is no longer a high-tech threshold industry, and has turned from a high ground of technological competition to a mature general-purpose product; secondly, LED manufacturing has gradually developed towards standardization and generalization, and the added value of products has fallen, and Cree has no advantage.
Following the announcement of the sale of the lighting business, Cree announced the sale of the LED product business. On October 19, 2020, Cree and SMART reached a final agreement to sell the LED product division to SMART for a transaction price of 300 million US dollars (about 2 billion yuan).
It is understood that the Cree LED product portfolio mainly includes blue and green LED chips, high-brightness LEDs, etc., with application scenarios covering indoor and outdoor lighting, video displays, transportation, and professional lighting.
According to financial data, in the fiscal year 2020, Cree LED products achieved sales revenue of US$433.2 million, a year-on-year decrease of 20%.
Cree said that this transaction further clarifies the company’s strategic positioning, Cree will lead the industrial transformation from silicon to silicon carbide, and further strengthen the company’s financial status.
To some extent, through the sale of the lighting business and LED product business by Cree, we can see its determination to transform into semiconductors. Today, Cree will officially change its name to Wolfspeed, further confirming its determination to make the SiC business bigger and stronger.