Press release

Cree Selected as Silicon Carbide Partner for the Volkswagen Group FAST Program

Sponsored by Businesswire

Cree, Inc. (Nasdaq: CREE), the global leader in silicon carbide (SiC)
semiconductors, has been selected as the exclusive silicon carbide
partner for the Volkswagen Group’s “Future Automotive Supply Tracks”
Initiative (FAST). The aim of FAST is to work together to implement
technical innovations quicker than before and to realize global vehicle
projects even more efficiently and effectively.

This press release features multimedia. View the full release here:

Cree CEO, Gregg Lowe stands with Mr. Baecker, Head of Volkswagen Purchasing Connectivity during Volk ...

Cree CEO, Gregg Lowe stands with Mr. Baecker, Head of Volkswagen Purchasing Connectivity during Volkswagen Group’s FAST partner selection ceremony held internally at their Wolfsburg, Germany headquarters on May 10 (Photo: Business Wire)

“The Volkswagen Group has committed to launch almost 70 new electric
models in the next ten years, which is up from our pledge of 50 and
increases the projected number of vehicles to be built on the Group’s
electric platforms from 15 million to 22 million in that timeframe. An
effective network is our key to success. Our FAST partners are our
strategic partners, each of them outstanding in their respective field.
We want to shape the automotive future together,” said Mr. Michael
Baecker, Head of Volkswagen Purchasing Connectivity.

This agreement connects two simultaneous revolutions: the automotive
industry’s move from internal combustion engines to EVs and the growing
adoption of silicon carbide in the semiconductor market. It also drives
innovation for both parties, enabling the Volkswagen Group to better
serve their customers.

The use of silicon carbide accelerates the automotive industry’s
transformation to electric vehicles, enabling greater system
efficiencies that result in electric cars with longer range and faster
charging, while reducing cost, lowering weight and conserving space.

“Cree’s technology is at the heart of the dramatic change underway in
EVs, and we are committed to supporting the automotive industry as it
transitions to more efficient, higher performing silicon carbide-based
solutions,” said Gregg Lowe, CEO of Cree. “We are very honored to be
partnering with the Volkswagen Group. VW Group is a global power in the
automotive field with a strong commitment to electric vehicles, and this
partnership will leverage the advantages of silicon carbide to enable
longer driving distances, shorter charge times and improved efficiency.
We look forward to helping them deliver on the automobiles of the

The Volkswagen Group and Cree will be working with tier one and power
module suppliers to engineer silicon carbide-based solutions for future
Volkswagen Group vehicles. The partnership was announced on May 10. This
follows Cree’s May 7 announcement of its significant manufacturing
capacity expansion of silicon carbide MOSFETs and wafers in support of
its customers.

About Cree, Inc.

Cree is an innovator of Wolfspeed® power and radio frequency
(RF) semiconductors and lighting class LEDs. 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.

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 timing of the
transition to using silicon carbide devices in EVs; Cree’s ability to
develop and design silicon carbide devices that will continue to improve
performance in the EV market; the risk that Cree may be unable to
manufacture these products with sufficiently low cost to offer them at
competitive prices or with acceptable margins; the risk Cree may
encounter delays or other difficulties in ramping up production of its
capacity to supply these products; customer acceptance of EVs using
Cree’s silicon carbide devices; 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.