Cree and Seoul sign five-year supply deal
Chipmaker Cree and LED manufacturer Seoul Semiconductor have signed a long-term agreement over the supply of LED chips.
The Korean company will buy at least $40 million worth of LED products from Cree during the first five quarters of the deal, while the overall agreement extends for five years - through Cree's fiscal year 2011.
Precise purchase commitments will be negotiated annually by the two companies.
The deal confirms Seoul Semiconductor as one of Cree's top LED chip accounts, along with Japan's Sumitomo and Osram Opto Semiconductors in Germany (see related stories).
Sumitomo is Cree's leading customer, and signed a $200 million purchase agreement with Cree for fiscal 2006 "“ equivalent to around half of the Durham, NC, company's annual sales. Their agreement is due for renewal in the next few weeks.
Cree and Seoul Semiconductor have also agreed to cross-license some patents detailing white LEDs, including Cree's much-quoted US patent 6,600,175, which details the production of a white light source using a blue- or UV-emitting LED.
Late last year, Cree licensed the same patent to the Taiwanese firm Kingbright Electronic, while Stanley, Cotco and Rohm have done similar deals with Cree.
