U.S. LED maker Cree Inc. on Tuesday reported a fiscal third-quarter loss that missed expectations. Shares of Cree further plunged 11% on Wednesday. Cree also announced that it is forming a joint venture with San’an Optoelectronics Co., Ltd., China’s largest maker of LED epitaxial wafers and chips, to produce and deliver to market high-performing, mid-power lighting class LED packaged products. The news caused quite a stir in the LED industry.

Apart from reporting its third-quarter financial results, Cree, Inc. on Tuesday also announced that it is forming a joint venture with San’an Optoelectronics Co., Ltd. to produce and deliver to market high-performing, mid-power lighting class LED packaged products in an exclusive arrangement to serve the expanding markets of North and South America, Europe and Japan, and serve China and the rest of the world on a non-exclusive basis.