Company Snapshot: Cree, Inc.

A leader in innovative LED-lighting technology

The U.S. leader in LED lighting is Cree, Inc., the Durham, North Carolina-based semiconductor company.  It was founded in 1987 and introduced the first blue LED in 1989.

Cree's major product families include:

• A broad range of efficient blue and green LED chips
• Semiconductor materials for advanced electronic and opto-electronic devices
• Packaged LED lamps for many applications including general illumination
• LED luminaires, or fixtures for commercial applications such as downlights used in corporate campuses, hotels, and restaurants
• High brightness LEDs
• Power-switching devices
• Radio-frequency/wireless devices

Strong growth in recent years

Cree has experienced tremendous growth in recent years, improving LED technology and working with other companies to apply LED chips and lighting in new ways. The company's revenue grew from $228 million in 2003 to $423 million in 2006, declining slightly to $394 million in 2007, and rebounding to $493 million in FY2008.

Cree has collaborative relationships with Asian LED manufacturers such as Kingbright Electronic Company in Taiwan and Seoul Semiconductor Company in Korea. Many of the company's LED products are distributed in Japan by the Sumitomo Corporation. Cree recently acquired LED Light Fixtures, Inc., and Intrinsic Semiconductor Corporation, increasing its overall share of the U.S. market.

In October 2008, Cree announced a long-term strategic agreement with the Austrian Zumtobel Group, a global market leader in professional lighting, to sell LED downlights to the European market.

Innovation and research key to growth

The experience of Cree highlights the importance of innovation and research and development in an environment of slow but steady job loss in the U.S. semiconductor manufacturing industry. Cree holds patents on a large number of LED technology improvements, and as demand for its innovative products has increased, the company's work force has nearly quadrupled, from 893 people in 2002, to 3,168 regular full and part-time employees in 2008.

In the 2008 Beijing Olympics, the exterior of the Bird's Nest stadium and Water Cube aquatic center were lit by 750,000 red, blue and green LED chips manufactured by Cree in Durham, North Carolina.

Source:

Manufacturing Climate Solutions: Carbon-Reducing Strategies and U.S. Jobs, Duke University, Center on Globalization, Governance & Competitiveness, November 2008.

Posted: 19-Feb-2009; Updated: 19-Feb-2009