|This is obviously going to cause friction with wafer customers but they will likely be forced to deal with Cree through the next 3-5 years.|
In a low growth environment with few players remaining I would agree but that could take decades. Expanding players will mean lower margins and lower market share. It is about surviving to be one of the few which helps if their are partners.
If they execute, the transition to 200mm will give Cree an enormous advantage.
I highly expect that not long after 200mm goes into mass production that 300mm is demonstrated. If Cree wants an advantage they need to not be outgunned on EBITDA by everyone of their competitors and that means making money, something they have consistently been unable to do.