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To: Robert Jacobs who wrote (17252)	2/5/2000 11:03:00 AM
From: LindyBill	Read Replies (2) \| Respond to of 54805

RE:Cree Siemens has a license to produce SiC wafers from Cree...the prime reason being to satisfy car manufacturer's requirement to have more than one source. This is not a short them problem for cree, but it is the problem, that, long term, turned INTC into a King. They made a big mistake acceding to the Automobile companies on this.

To: Robert Jacobs who wrote (17252)	2/5/2000 1:02:00 PM
From: FLSTF97	Respond to of 54805

RE: Cree Competing with its customers It probably wasn't clear from my post what I meant since the focus was on substrates. When I said it competes with some of its customers, I meant that when it sells wafers to Infineon to produce blue leds and at the same time CREE produces blue leds that puts it in the position of competing with its customers. If TDI buys CREE's wafers and then fills the micropipes to allow growing a lower defect SiC surface, that would seem to be a rather direct competition. Of course I don't know if TDI has any market share. BTW I pretty much concur that it makes sense for CREE to license firms like Infineon to satisfy the second source issue. Intel seemed to have profited well from having done so. Indeed they had Intel as a model so they could have written a better licensing agreement to avoid being aggravated for a long period by the second source agreement. Do you know the framework for any of their licenses? FATBOY

To: Robert Jacobs who wrote (17252)	2/5/2000 3:33:00 PM
From: FLSTF97	Read Replies (1) \| Respond to of 54805

RE: Cree actually does not compete with its customers. I think this statement from the 10K pretty much confirms that CREE may be at risk of competing with its customers. In addition, some of our customers could compete with us. For example, Osram Opto Semiconductors GMBH and Co. OHG, or Osram, an indirect subsidiary of Siemens AG, and Shin-Etsu Handotai Co. Ltd., or Shin-Etsu, license some of our LED technology. Osram currently purchases large volumes of our standard brightness blue LEDs but also manufactures some of its volume requirements for these LEDs. Shin-Etsu may also seek to enter our LED markets. The market for SiC wafers is likewise becoming competitive as other firms have in recent years begun offering SiC wafer products or announced plans to do so. It will definitely be interesting to see how this plays out. FATBOY