Cree LED Moves Beyond the Chip with Integrated L2 PCBA Solutions

DURHAM, N.C. – January 13, 2026 – Cree LED, a prominent name in the lighting component industry, has announced a significant strategic expansion with the launch of its new Level 2 (L2) Solutions portfolio. The new offering provides lighting manufacturers with fully assembled and populated LED printed circuit board assemblies (PCBAs), marking a pivotal shift from selling individual LED components to delivering integrated, ready-to-use systems.

This move aims to streamline the complex process of lighting fixture development by offering a single, reliable source for both high-performance LEDs and the boards they are mounted on. The portfolio includes a range of standard options for both indoor and outdoor applications, as well as custom solutions for high-volume clients.

“We continue to hear from top-tier suppliers committed to the lighting market long-term that they need a complete L2 solution,” said Joe Clark, president of Cree LED, in the company's announcement. “The time is right to introduce this new portfolio. Our decades of LED reliability expertise and global manufacturing depth give customers the stability, certainty and trusted support they need.”

A Strategic Pivot in a Maturing Market

Cree LED's introduction of L2 solutions places it in direct competition with other major industry players like Lumileds, Nichia, and ams OSRAM, which have already established offerings of integrated modules and light engines. This strategic pivot reflects a broader industry trend where lighting manufacturers increasingly seek to reduce development complexity, mitigate integration risks, and accelerate their time-to-market. By moving up the value chain, Cree LED is evolving from a component supplier to a solutions provider.

The market for integrated LED lighting is projected to see substantial growth, driven by demand for energy efficiency and more sophisticated, intelligent lighting systems. Manufacturers are looking for partners who can deliver predictable, system-level performance rather than just individual components that require extensive in-house engineering. Cree LED's entry into this space with a comprehensive portfolio signals its intent to capture a larger share of this evolving market by simplifying the design and procurement process for its customers.

This move also aligns with the strategy of its parent company, Penguin Solutions (Nasdaq: PENG). While Penguin Solutions has recently sharpened its focus on AI infrastructure and high-performance computing since its rebranding from SMART Global Holdings, it continues to support its specialized technology divisions. The L2 launch allows Cree LED to increase the value of its offerings, leveraging its deep intellectual property and brand reputation in the lighting sector, thereby strengthening a key business unit within the diversified Penguin Solutions portfolio.

Simplifying the Supply Chain for All Manufacturers

A central pillar of Cree LED’s new strategy is the simplification of the supply chain. By providing fully populated and tested PCBAs, the company eliminates a significant manufacturing step for lighting fixture producers. This "single-supplier" approach reduces logistical complexity, consolidates accountability, and can shorten development cycles from months to weeks.

Crucially, the company is making its standard L2 solutions accessible to manufacturers of all sizes. The PCBAs will be available through Cree LED’s existing global distribution network with what the company describes as "low to no-minimum order quantities." This policy directly addresses a major pain point for small-to-medium-sized enterprises (SMEs), which often face barriers due to high MOQs from component suppliers.

For these smaller players, the benefits are immediate. Lower upfront investment reduces financial risk, while the ability to order smaller batches facilitates faster prototyping and product iteration. It democratizes access to high-quality, reliable LED technology, enabling smaller companies to compete more effectively with larger OEMs on performance and innovation, rather than being bogged down by component sourcing and assembly challenges.

High-Performance Technology for Diverse Applications

The new L2 portfolio is built upon Cree LED’s well-established J Series and XLamp LED platforms, offering tailored solutions for specific environments.

For indoor applications, the company offers Linear PCBAs featuring its J Series 2835 LEDs. These are designed for fixtures like troffers, panel lights, and linear pendants. They are available in a range of common color temperatures (CCTs) from a cool 5000K to a warm 3000K, with high Color Rendering Index (CRI) options of 80 and 90. The availability of 90 CRI is particularly significant, as it ensures colors appear vibrant and true to life. This level of color accuracy is critical in retail settings to make products appealing, in galleries to represent art faithfully, and in offices and schools to create more comfortable and productive environments by reducing eye strain.

For outdoor and high-output needs, the portfolio includes Outdoor Array PCBAs built with robust J Series 5050 LEDs. These boards are engineered for demanding applications like streetlights and area lighting, offering CCTs from 5000K down to a very warm 2700K with a standard 70 CRI, optimized for efficacy and long-term reliability in harsh conditions.

For large-scale manufacturers with specific needs, Cree LED is also offering custom L2 solutions. This program allows for expanded design flexibility, leveraging the full breadth of the company's XLamp and J Series LEDs to create unique board layouts, multi-channel color tuning systems, and other advanced configurations with dedicated engineering support. This dual approach of standard and custom offerings allows Cree LED to serve the entire spectrum of the lighting market, from rapid-turnaround projects to highly specialized, high-volume product lines.

By leveraging its global manufacturing network and a fabless production strategy, Cree LED aims to deliver on its promise of supply stability—a critical assurance in a semiconductor market that has faced periods of volatility. This commitment to reliability, combined with a product portfolio that simplifies design and procurement, positions the company to meet the growing demand for more integrated and user-friendly lighting solutions.