Cree invests US$83 million to reach cooperation agreement with Lextar on blue LED chips
Lextar Electronics (stock code: 3698) announced today (27th) that, upon approval by the boards of directors of both parties, it will enter into a partnership with CREE, Inc. (Nasdaq: CREE) has entered into a long-term cooperation agreement with blue LED chips. Cree of the United States invested US$83 million (approximately RMB 510.6658 million) in Lextar Electronics and held 83 million shares of Lextar Electronics at NT$30 per share (approximately RMB 6.1635). Lextar will provide Cree blue LED chips from the United States in the long term. Both parties jointly pursue rapid growth in the LED lighting industry. In addition, Lextar Electronics will also obtain related patent authorization from Cree in the United States for LED chips and components. In the future, American Cree will hold approximately 13% of the equity of Lextar Electronics and become a strategic lighting customer of Lextar Electronics.
Dr. Su Fengzheng, Chairman and CEO of Lextar Electronics, said that Lextar has many years of expertise and stable exports in the field of small and medium-power backlight and lighting application LEDs. In addition to its leading technology and industrial position in the field of high-power LED components, American Cree has also developed rapidly in the lighting application market in recent years. This cooperation between Lextar and Cree of the United States will help Lextar develop steadily in the fast-growing LED lighting field in the future. At the same time, the upstream chips will have a stable outlet, which will greatly help Lextar improve the competitiveness of its technology and products. In addition, through the cross-licensing of patents from both parties, the two parties can share their research and development results in technology and products in the future, increasing each other's competitiveness.
Chuck Swoboda, chairman and CEO of Cree Corporation of the United States, said that he is very excited about the deepened cooperative relationship with Taiwan Lextar Electronics, which can accelerate the mutual growth of both parties in the LED and lighting markets. In the future, American Cree will obtain high-quality mid-power LED chips produced by Lextar Electronics, and American Cree can focus on the development and production of high-power LED chips that it specializes in to enhance differentiation. This cooperation will make American Cree more operationally and financially flexible, and will also create maximum benefits for the company and investors.
Longda stated that this private placement has been approved by the boards of directors of both parties, but it still needs to be approved by the investment review committee and the shareholders’ meeting and other relevant procedures before it takes effect.
ANNA