Cree (Durham, N.C.) said the Huizhou facility, located in China's Guangdong province, would be the company's first chip production facility outside of North America. The site is targeted to also house future components manufacturing expansion, the company said.

"This investment enables us to expand our presence in China and demonstrates our commitment to serving the growing demands of both our local and global LED customers," said Chuck Swoboda, Cree chairman and CEO, in a statement.

More than half of Cree's employees work in China, mostly at the company's current factory in Huizhou, the company said. Huizhou is joining the Cree LED City program, an international initiative aimed at promoting the deployment of energy-efficient LED lighting, Cree said.