Heavy! CREE was founded in LED and three optical power company

Yesterday (25) evening, CREE Inc. issued a press release announced with three optical joint venture, the joint venture will operate with high performance and power in the lighting level LED packaging products, expanding north and South America, Europe and Japan to provide services, and based on non for it China and other parts of the world to provide services.

The new joint venture (Cree Venture LED Company, Ltd.) technology and brand leader and world-class supplier of LED lighting class LED field together. With the Cree outstanding patent and global sales channels, the joint venture will launch extensive power high performance products in combination, to provide services for the power of the $4 billion global LED market. Based on this protocol, Cree LED service can meet the general lighting (indoor and outdoor lighting), gardening and other LED market demand more widely.

Cree president and CEO Chuck Swoboda said: "the joint venture companies leading products and excellent channel capacity based, so that Cree can provide high power and power in the whole series of LED products for customers, to serve the broader market and meet the needs of different applications."

"CREE's existing high power products, power products with the joint venture company brings, will make CREE LED product line to the industry and no one can Cree width, LED division, senior vice president and general manager Dave Emerson said," plus CREE in the leading position of LED lighting system, US customers will be able to get from the existing channel of CREE's best and most complete product support."

The joint venture will be located in Hongkong, will have the rich experience in the LED industry TK Ong as general manager, TK Ong will report to the members of the board of Directors consists of two companies. Cree has a 51% stake in the joint venture, and three shares accounted for 49%.

According to Sanan optoelectronics issued 26 "eighth session of the board of directors meeting of the forty-second notice" display, the joint venture company paid up capital of $10 million, Cree Inc. to its own monetary funds invested 5 million 100 thousand dollars; three to its own monetary funds invested 4 million 900 thousand dollars.

In the next few months, Cree and three on both investment and operation of more detailed consultation, target began operations in the third quarter of 2017. The joint venture will pay royalties to CREE patent portfolio.

According to LEDinside, CREE and three long to discuss cooperation rumors, but due to the Lumileds warning, plus the CREE SiC product itself involves many military and aerospace business, so the U.S. government will not agree with the merger of the two sides. Therefore, through the joint venture subsidiary, is the best choice for both sides.

Can break through such cooperation into three restrict overseas market facing patent, CREE can also solve the long-term problems of their own development capacity, problems in power LED cost competitiveness is weak. This cooperation framework theory makes both sides benefit, can also bypass cross-border mergers and acquisitions face more stringent regulation, reduce the uncertainty caused by mergers and acquisitions.

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