Heavy pound! 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.) will be lighting class LED technology and brand leaders in the field with the world's leading supplier of LED together. With a combination of Cree's outstanding patents and global sales channels, the joint venture will launch a wide range of high-performance power product portfolio, providing services to the world's $4 billion power LED market. Based on this protocol, Cree's LED business is able to meet the general needs of general lighting (indoor and outdoor lighting), gardening and other LED markets.

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 a wealth of experience in the LED industry, general manager of TK Ong, TK Ong need to report to the board of directors of the 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 between the two sides set up subsidiaries, the two sides are the best choice.

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 in theory will benefit both sides of the joint venture, but also to circumvent the increasingly stringent regulatory cross-border mergers and acquisitions face, reduce the uncertainty caused by mergers and acquisitions.

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