Sumitomo and Cree ink $180 million LED deal
Cree and Sumitomo have renewed their long-standing purchase deal, with the Japanese trading giant agreeing to buy $180 million worth of LEDs and wafers over the next year.
That represents a 10% drop on the figure originally agreed for the current fiscal year, which concludes at the end of this month.
However, the $200 million purchase commitment signed one year ago (see related story) between the two companies has been running below plan and Cree says that if it is fulfilled, the new $180 million deal will actually represent a 10% increase on the current year.
This means that Cree's sales to Sumitomo in fiscal year 2006 have been approximately 20% below original expectations.
The purchase agreement covers Cree's complete line of LED wafers and chips, including the new "EZBright" range of products.
Sumitomo's Koichiro Kusano is hopeful that the latest products will find their way into newer, more profitable applications:
"We are excited about promoting Cree's advanced LED products in the coming year," said the assistant general manager at Sumitomo's electronics division. "Breakthroughs in performance are opening doors to new applications, especially in the consumer electronics and general lighting areas."