Market Overview

Cree and STMicroelectronics Announce Multi-Year Silicon Carbide Wafer Supply Agreement


Agreement to boost commercial expansion of SiC in automotive and
industrial applications

Cree, Inc. (NASDAQ:CREE) announces that it signed a multi-year
agreement to produce and supply its Wolfspeed® silicon carbide (SiC)
wafers to STMicroelectronics (NYSE:STM), a global semiconductor leader
serving customers across the spectrum of electronics applications. The
agreement governs the supply of a quarter billion dollars of Cree's
advanced 150mm silicon carbide bare and epitaxial wafers to
STMicroelectronics during this period of extraordinary growth and demand
for silicon carbide power devices.

"ST is the only semiconductor company with automotive-grade silicon
carbide in mass production today, and we want to press forward to grow
our SiC business both in terms of volume and breadth of applications
served, targeting leadership in a market estimated at more than $3B in
2025," said Jean-Marc Chery, president and CEO of STMicroelectronics.
"This agreement with Cree will improve our flexibility, sustain our
ambition and plans, and contribute to boosting the pervasion of SiC in
automotive and industrial applications."

"We remain focused on increasing the adoption of silicon carbide-based
solutions, and this agreement is a testament to our mission," said Gregg
Lowe, CEO of Cree. "This is the third multi-year agreement that we have
signed this past year in support of the industry's transition from
silicon to silicon carbide. As the world leader in silicon carbide, Cree
continues to expand capacity to meet the growing market needs,
particularly in industrial and automotive applications. We are extremely
pleased to continue to support STMicroelectronics as we both invest to
accelerate this market."

Wolfspeed, A Cree Company, is the global leader in the manufacture of
silicon carbide wafers and epitaxial wafers. The supply agreement
enables silicon carbide applications in the broad automotive and
industrial markets.

About STMicroelectronics

ST is a global semiconductor leader delivering intelligent and
energy-efficient products and solutions that power the electronics at
the heart of everyday life. ST's products are found everywhere today,
and together with our customers, we are enabling smarter driving and
smarter factories, cities and homes, along with the next generation of
mobile and Internet of Things devices. By getting more from technology
to get more from life, ST stands for life.augmented.

In 2017, the Company's net revenues were $8.35 billion, serving more
than 100,000 customers worldwide. Further information can be found at

About Cree, Inc.

Cree is an innovator of Wolfspeed® power and radio frequency (RF)
semiconductors, lighting class LEDs and lighting products. Cree's
Wolfspeed product families include silicon carbide materials,
power-switching devices and RF devices targeted for applications such as
electric vehicles, fast charging, inverters, power supplies, telecom and
military and aerospace. Cree's LED product families include blue and
green LED chips, high-brightness LEDs and lighting-class power LEDs
targeted for indoor and outdoor lighting, video displays, transportation
and specialty lighting applications. Cree's LED lighting systems and
lamps serve indoor and outdoor applications.

For additional product and Company information, please refer to

Forward Looking Statements:

This press release contains forward-looking statements involving risks
and uncertainties, both known and unknown, that may cause actual results
to differ materially from those indicated. Actual results may differ
materially due to a number of factors, including the risk that we may be
unable to manufacture these new products with sufficiently low cost to
offer them at competitive prices or with acceptable margins; the risk we
may encounter delays or other difficulties in ramping up production of
our capacity to supply these products; customer acceptance of our
products; the rapid development of new technology and competing products
that may impair demand or render Cree's products obsolete; and other
factors discussed in Cree's filings with the Securities and Exchange
Commission, including its report on Form 10-K for the year ended June
24, 2018, and subsequent filings.

Cree® and Wolfspeed® are registered trademarks of Cree, Inc.

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