On October 19, 2020, Cree announced that it had reached a final agreement with smart Global Holdings, Inc. to sell Cree led to smart at a transaction price of US $300 million, including prepayment of US $50 million, deferred payment of US $125 million and contingent consideration (ear out) of US $125 million.

 Cree said the deal further clarifies the company's strategic positioning, and Cree will lead the industry transformation from silicon to silicon carbide and further enhance the company's financial situation. Based on this, Cree will continue to invest in the semiconductor sector and make full use of the growth opportunities covering new energy vehicles, 5g and industrial applications. 

 Cree LED is one of the most powerful brands in the industry, and its product portfolio includes high-efficiency LED chips and high-performance LED components. Smart is the global leader in dedicated memory, storage and high-performance computing solutions, serving the electronics industry for more than 30 years. With Smart's diverse customer base and global operations capabilities, Cree LED will continue to provide industry-leading products to customers. The transaction also needs to be approved by the regulatory authorities and meets the usual transaction conditions. It is expected to be completed in the first quarter of 2021. Upon completion of the transaction, smart will authorize and incorporate the Cree led brand name into the smart business portfolio. 

Cree has announced its transformation to a high-tech semiconductor enterprise since 2018. Over the past two years, Cree, on the one hand, has made continuous investment to expand production and build factories to lay out and develop semiconductor fields such as silicon carbide and gallium nitride, on the other hand, it has gradually stripped off lighting and led related businesses. 

 In March 2019, Cree announced the sale of Cree lighting, the lighting products business unit, to ideal industries, a family business. Cree lighting includes business applications, industrial applications and consumer LED lighting, light sources and lighting solutions. In May 2019, the sale of Cree lighting was officially completed with a pre tax price of about US $310 million. The gains were used to accelerate wolfspeed (core power and RF) growth and expand the semiconductor business. The re sale of LED products division marks another key step in Cree's transformation journey. At present, the compound semiconductor market represented by silicon carbide and gallium nitride is booming. Cree's move will further accelerate the application of silicon carbide, indicating its determination to become a pure global semiconductor giant.