U.S.-based LED maker Cree, Inc. announced it is forming a joint venture with Chinese firm San’an Optoelectronics Co., Ltd. to produce and deliver mid-power lighting class, packaged LEDs. Cree reports that the exclusive arrangement will serve the expanding markets of Europe, North and South America, and Japan. The venture will also serve China and the rest of the world on a non-exclusive basis. The new joint venture, to be called Cree Venture LED Company, Ltd., will combine the technology in lighting class LEDs of Cree, with LED supplier San’an Optoelectronics.
Firm to Produce Mid-Power LEDs
Cree says that the joint venture will leverage its portfolio of patents and global sales channels to sell a broad portfolio of high-performing, mid-power LED products. According to Cree, these new mid-power LEDs will serve the $4 billion growing global market for mid-power LEDs. With the agreement, Cree says its LED business can now serve the broader needs of the general illumination (including indoor and outdoor lighting) as well as horticultural and other evolving LED markets.
“This joint venture builds on both companies’ leading product and channel capabilities to give Cree the ability to provide our LED customers a complete range of high-power and mid-power LED products to serve a broad range of markets and applications,” said Chuck Swoboda, Cree president and CEO.“The addition of the mid-power LED products in this new joint venture to Cree’s industry-leading high-power products gives us an unparalleled LED portfolio,” stated Dave Emerson, Cree LEDs senior vice president and general manager. “With our LED systems expertise, customers are able to work with our existing channels to find the best LEDs for their applications.”
“The addition of the mid-power LED products in this new joint venture to Cree’s industry-leading high-power products gives us an unparalleled LED portfolio,” stated Dave Emerson, Cree LEDs senior vice president and general manager. “With our LED systems expertise, customers are able to work with our existing channels to find the best LEDs for their applications.”
General Manager and Board will Govern Cree Venture LED Company
The joint venture’s headquarters will be in Hong Kong, and TK Ong, General Manager, will lead Cree Venture LED Company, bringing his extensive experience in the LED market. A board of directors with members from both companies will also govern the new company. Cree will own 51 percent stake in the joint venture, and San’an will own 49 percent.
Cree and San’an intend to work in the coming months to incorporate, fund and commence operations of the joint venture. The companies are targeting initial product sales of the joint venture to begin in the third calendar quarter of 2017. Cree noted that it would receive royalties from the joint venture for the use of its patent portfolio.