Cree Inc. is forming a joint venture with San’an Optoelectronics Co. Ltd to produce and deliver to market mid-power lighting class LED packaged products. The agreement includes an exclusive arrangement to serve North and South America, Europe and Japan and a non-exclusive arrangement to serve China and the rest of the world (ROW).

The joint venture, Cree Venture LED Co. Ltd, armed with Cree’s portfolio of patents and global sales channels, will target the fast growing, $4 billion global mid-power LED market.

Cree’s own capacity is for high-power segment so that the focus of the JV on the mid-power products expands the company's markets. “The addition of the mid-power LED products in this new joint venture to Cree’s industry-leading high-power products gives us an unparalleled LED portfolio,” stated Dave Emerson, Cree LEDs senior vice president and general manager, in a press release.

The JV, based in Hong Kong will be governed by a board of directors with members from both companies. Cree will own 51% of the joint venture and San’an will own the rest. Cree will receive royalties from the joint venture on its patent portfolio.

Cree Venture LED is targeting initial product sales in Q3 of 2017.