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Cree Sells LED Businesses
DateTime:2023-07-22 Issuer:adhesionled Views:564

Recently, Cree has attracted the most attention and discussion in the LED industry.Following the sale of Cree Lighting, Cree announced on October 19, 2020 that it will sell its LED Products business and expects to complete the transaction in the first quarter of next year.This is the end of Cree's history of LED and lighting.

Cree's business structure is too dependent on the lighting LED market

In Cree's glory days, the LED+ packaging business generated more than $1 billion in annual revenue from 2013 to 2014, ranking the second in the world only after Nichia, making Cree the leader in the LED lighting era.However, as the LED lighting industry matured and the focus of competition shifted to cost, Cree's advantage could not be maintained. Combined with the sale of LED lighting business, internal synergies were further weakened. In 2019, Cree's LED business revenue was only USD 480 million, which made Cree dropped to 8th place in the global ranking.


As the global competitive landscape changes, the market share of Chinese manufacturers continues to increase

In recent years, The LED industry in China has risen rapidly by virtue of its production capacity and cost advantages.MLS and NATIONSTAR have successively entered the ranks of the top 10 LED manufacturers in the world, and the old LED enterprises have been gradually squeezed out of the list.

2018-2019 top 10 GLOBAL LED manufacturers packaging revenue ranking


The continuous loss of market share of international LED giants such as Nichia, OSRAM OS, Lumileds and CREE, coupled with the poor global economic environment in the past two years, have made the traditional LED industry giants face the dilemma of enterprise ownership change, or asset sale.


SGH has a permanent right to use the Cree brand name and will continue to use it in the future.However, even with a change of ownership, Cree is still an important customer for its OEM partners and will not change its operating structure in the near future, so the shift of supply chains to Asia has not changed.

Partial data sources::「LEDinside」

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