Cree and Seoul Semiconductor Expand Business Relationship with LED Chip Supply and License Agreements
Cree Inc. Press Release
FlashlightNews.org - 05/10/2006
DURHAM, N.C. - Cree, Inc. (Nasdaq: CREE) today announced that it has signed a five-year supply agreement with Seoul Semiconductor Co., Ltd., a strategic LED chip customer headquartered in Korea. Seoul Semiconductor has committed to purchase at least $40 million of LED products during the first five quarters of the agreement. Purchase commitments for subsequent periods are to be negotiated annually. The agreement extends through Cree's fiscal year ending June 2011 and may be extended up to five additional years if certain sales conditions are met.
Cree also today announced that the parties have entered into a license agreement pursuant to which the parties have cross-licensed certain patent rights relating to white LED technologies and have agreed to cooperate in defending these rights. The license granted by Cree to Seoul Semiconductor includes Cree's U.S. Patent No. 6,600,175 and is one of several Cree has granted to its strategic partners under the ‘175 patent.
“We are pleased to announce these agreements with Seoul Semiconductor, which are the results of several years of strong cooperation between our two companies to win market share for white LEDs. Our success to date has been mostly focused on design wins in the Korean market and we look to further expand this success on a worldwide scale over the next several years,” commented Chuck Swoboda, Cree’s chairman and chief executive officer.
“As our business continues to grow, it is important to align with other industry leaders. Reaching this long-term supply agreement with Cree provides access to leading LED technology. Our partnering on wider technologies paves the way for added success in future applications,” commented Chung H. Lee, Seoul Semiconductor’s president. “With the Cree technology, Seoul Semiconductor is positioned for further expansion of our business.”
About Seoul Semiconductor Co., Ltd.Seoul Semiconductor is the leading LED manufacturer based in Korea. The keys to its success in the market are its innovative and proprietary technologies in LED packaging, such as for optics, heat management and materials selection.
Seoul Semiconductor offers a diverse product line for a broad range of applications, including general lighting, backlighting for handheld products, and automotive and entertainment applications. Seoul Semiconductor's product families include blue and white LEDs for use in handheld products, automotive and entertainment applications and general lighting. For product specifications please refer to www.seoulsemicon.com.
About Cree, Inc.Cree is a market-leading innovator and manufacturer of semiconductors and devices that enhance the value of solid-state lighting, power and communications products by significantly increasing their energy performance and efficiency. Key to Cree’s market advantage is its world-class materials expertise in silicon carbide (SiC) and gallium nitride (GaN) for chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products.
Cree drives its increased performance technology into multiple applications including exciting alternatives in brighter and more tunable light for general illumination, backlighting for more vivid displays, optimized power management for high-current switch-mode power supplies and variable speed motors, and more effective wireless infrastructure for data and voice communications. Cree customers range from innovative lighting fixtures makers to defense-related federal agencies.
Cree’s product families include blue and green LED chips, lighting LEDs, LED backlighting solutions, power-switching devices and radio-frequency/wireless devices. For product specifications please refer to www.cree.com.
This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, such as the possibility we may be unable to manufacture the volume of products required to fulfill demand in a timely manner due to technological or manufacturing difficulties; the risk that Seoul Semiconductor's demand for our products may decrease; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for the products; and other factors discussed in Cree’s filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended June 26, 2005, and subsequent filings.
Cree and the Cree logo are registered trademarks of Cree, Inc