Cree

Durham, United Stateswww.cree.com
Invested through
  • Triodos Pioneer Impact Fund
Asset ClassesListed equity
Impact strategyImpact Equities and Bonds
Bloomberg tickerCREE US
ISIN codeUS2254471012
Industry groupSemiconductors & Semiconductor Equipment
Aligned with SDGs
  • Good health and well-being

* Additional information

Cree produces wafers and device level components for high-power applications based primarily on silicon carbide (SiC) and gallium nitride (GaN), leveraging the technology historically used for LED production. The company has transitioned into a pure play semiconductor company with the sale of its Light Product business in 2019 and its LED business in 2021. Later in 2021, Cree will be renamed into Wolfspeed, the name of its only remaining division. The Wolfspeed business produces SiC, GaN, power devices and RF devices. Its products are mainly used in solar, electric vehicles, motor drives, power supplies and transportation applications, while RF devices are used for communication purposes. Cree is the largest supplier of SiC wafers, having 4x as high a market share as its nearest competitor. The Wolfspeed business has large growth potential. This is because the use of SiC and GaN is still relatively minor but should increase strongly as SiC and GaN offer advantages over silicon. As a fully integrated materials producer and emerging device manufacturer, Cree is well-positioned for continued growth well into the 2020's primarily as electric vehicle adoption accelerates. Cree has 5,130 employees, was founded in 1987 and is headquartered in Durham, NC, USA.

Investment rationale

Under the Wolfspeed brand, Cree is the biggest (commercial) supplier of Silicon Carbide (SiC) in the world. SiC is an alternative material to produce wafers (most wafers are produced from silicon). SiC offers important advantages to silicon.

SiC allows for smaller and lighter, yet faster and more durable products. This is very relevant for electric vehicles, where less weight means a car can drive further on a single charge. In addition, faster charging means driving longer distances with an electric vehicle is becoming easier. So, Cree's Wolfspeed division plays an important role in stimulating the adoption of electric vehicles. Wolfspeed's products are also used for storage of solar energy. With its products, Cree enables more efficient use of resources, which aligns well with our Innovation for Sustainability theme.