Cree and ON Semiconductor Announce Multi-Year Silicon Carbide Wafer Supply Agreement

Cree, Inc. (Nasdaq: CREE) and ON Semiconductor Corporation (NASDAQ: ON) announced the execution of a multi-year agreement where Cree will produce and supply its Wolfspeed^® silicon carbide wafers to ON Semiconductor, a global semiconductor leader serving customers across the spectrum of electronics applications. The agreement, valued at more than $85 million, provides for the supply of Cree’s advanced 150mm silicon carbide (SiC) bare and epitaxial wafers to ON Semiconductor for use in high-growth markets, such as electric vehicle and industrial applications.

"ON Semiconductor continues to be a leader in driving the development of energy efficient innovations and devices,” said ON Semiconductor Vice President & Chief Procurement Officer Jeffrey Wincel. "Partnering with Cree is essential in maintaining a world-class supply base. This agreement supports our commitment to growing automotive and industrial applications and ensuring the availability of industry-leading silicon carbide that helps engineers solve their unique design challenges.”

"We are committed to leading the global semiconductor market’s transition from silicon to silicon carbide solutions and are pleased to support ON Semiconductor as we work to accelerate this market,” said Cree CEO Gregg Lowe. "This is the fourth major long-term agreement for silicon carbide materials that we have announced in the past year and a half. We will continue to drive silicon carbide adoption and availability through ongoing wafer supply agreements, such as this, and our recently announced major capacity expansion.”

Wolfspeed, A Cree Company, is the global leader in the production of silicon carbide and epitaxial wafers.

About Cree

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 www.cree.com.

About ON Semiconductor

ON Semiconductor is driving energy efficient innovations, empowering customers to reduce global energy use. ON Semiconductor is a leading supplier of semiconductor-based solutions, offering a comprehensive portfolio of energy efficient power management, analog, sensors, logic, timing, connectivity, discrete, SoC and custom devices. ON Semiconductor’s products help engineers solve their unique design challenges in automotive, communications, computing, consumer, industrial, medical, aerospace and defense applications. ON Semiconductor operates a responsive, reliable, world-class supply chain and quality program, a robust compliance and ethics program and a network of manufacturing facilities, sales offices and design centers in key markets throughout North America, Europe and the Asia Pacific regions.

For more information, visit www.onsemi.com.

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 Cree may be unable to manufacture these new 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 Cree’s capacity to supply these products; customer acceptance of Cree’s products; the market demand for silicon carbide; the rapid development of new technology and competing products that may impair demand or render Cree’s products obsolete; and other factors discussed in each of Cree’s and ON Semiconductor’s filings with the Securities and Exchange Commission ("SEC”), including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other of Cree’s and ON Semiconductor’s filings with the SEC.

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

ON Semiconductor and the ON Semiconductor logo are registered trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although ON Semiconductor references its website in this news release, information on the website is not to be incorporated herein.

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