Cree plans LED facility in China

The 592,000-square-foot facility in Huizhou will be Cree’s first chip-production facility outside of North America and is targeted to also house future components manufacturing expansion.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 11/9/2009

LED lighting specialist Cree Inc this morning announced an agreement to purchase a 592,000-square-foot facility in Huizhou, Guangdong Province, China.

The fab will be Durham, NC-based Cree’s first chip-production facility outside of North America and is targeted to also house future components manufacturing expansion. The company said it expects that the new chip production facility will help accelerate LED lighting. Cree did not disclose the fab's purchase price and did not offer a timeline for production.

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“This investment enables us to expand our presence in China and demonstrates our commitment to serving the growing demands of both our local and global LED customers,” said Chuck Swoboda, Cree chairman and CEO, in a statement. “We are building on a solid foundation in Huizhou with a strong local management team and a history of manufacturing excellence. We look forward to continued success in China as we drive the LED lighting revolution.”

Local government pledged its support for Cree in the statement, noting that SSL (solid state lighting) is a key strategic green industry for China and that the country plans to support Cree through government projects, as well as government policies.

Cree also announced that Huizhou is joining the Cree LED City program, an international initiative aimed at promoting the deployment of energy-efficient LED lighting. Huizhou has completed several LED streetlight trials and is in the process of deploying LED streetlights in the ZhongKai Hightech Industrial Zone, according to the company.