Little does one think Cree sells Infineon to Wolfspeed for $850 million

American LED giant CREE (CREE) announced a $850 million sale of power and RF radio frequency components of Wolfspeed's business to the German giant Infineon (Ying Feiling), Infineon is the predecessor of SIEMENS's semiconductor business, is one of the key companies of SIEMENS group currently. Cree will focus more on LED components and Infineon to get more business, technology and resources, can continue to expand in the field of automotive electronics and mobile phone product line, as well as energy, green energy and networking in the field.

Cree shares rose, the fourteen week peak, up by $9.6%, to $27.5. Infineon's share price also rose to 13.61 euros, or up to 2.4%.

Infineon is Europe's largest semiconductor companies, cash will be $850 million acquisition of Cree Wolfspeed business, the Department is the production of compound semiconductor, power management chip, there are considerable achievements in this field. The acquisition will expand Infineon's product line, including a range of sensors, radar and security products.

Infineon by this business strategy, the company can stand firm in the field of power semiconductor development, wide application requires the use of power semiconductor, from car electronic refrigerator etc. at the same time, through networking chip technology, intelligent vehicle, the future of smart appliances and smart building systems, which have better performance. Is Infineon.

CEO Reinhard Ploss said he expected Wolfspeed until 2020, the annual sales growth is expected to fall to 20% such a level.

For Cree, the sale of Wolfspeed, the company can focus more on the LED lighting business, including LED chips, LED bulbs, power switching components (optocoupler), etc..

The original Cree has been split out of power semiconductor business to set up Wolfspeed, IPO is going to raise more funds from the open market, but now the cause to this very interested in Infineon, is a good result, Cree get cash, more capital in the LED industry to go.

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