                                                                     EXHIBIT 5.1

    Opinion of Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P.
                                     Lawyers
                                 P. O. Box 2611
                          Raleigh, North Carolina 27601
                               Phone: 919-821-1220
                                Fax: 919-821-6800


                                October 30, 2001

Cree, Inc.
4600 Silicon Drive
Durham, North Carolina 27703

Ladies and Gentlemen:

     As counsel for Cree, Inc., a North Carolina corporation (the "Company"), we
furnish the following  opinion in connection  with the proposed  issuance by the
Company of up to 3,600,000  shares of its common stock,  $0.00125 par value (the
"Common Stock"),  pursuant to the Cree, Inc. Fiscal 2002 Stock Option Bonus Plan
and the Cree, Inc. 2001 Nonqualified Stock Option Plan (hereinafter  referred to
collectively as the "Plans"). These securities are the subject of a Registration
Statement to be filed by the Company with the Securities and Exchange Commission
on Form S-8 (the "Registration  Statement") under the Securities Act of 1933, as
amended (the "1933 Act"), to which this opinion is to be attached as an exhibit.
This  opinion is  furnished  pursuant to the  requirement  of Item  601(b)(5) of
Regulation S-K under the 1933 Act.

     We have  examined  the  Articles  of  Incorporation  and the  Bylaws of the
Company, each as amended, the minutes of meetings of its Board of Directors, and
such other  corporate  records of the Company and other  documents and have made
such  examinations  of law as we  have  deemed  relevant  for  purposes  of this
opinion. We also have received a certificate of an officer of the Company, dated
of even date herewith,  relating to the issuance of the Common Stock pursuant to
the Plans.  Based on such  examination and such  certificate,  it is our opinion
that the  3,600,000  shares  of  Common  Stock  of the  Company  that are  being
registered pursuant to the Registration Statement have been duly authorized, and
when duly issued and delivered  against  payment of the  consideration  therefor
expressed in the applicable resolutions of the Board of Directors or a committee
thereof,  pursuant to the Plans as described in the Registration Statement, such
shares will be validly issued, fully paid, and nonassessable.

     The opinion set forth herein is limited to matters  governed by the laws of
the State of North Carolina,  and no opinion is expressed  herein as to the laws
of any other  jurisdiction.  The  opinion  set forth  herein  does not extend to
compliance with state and federal  securities laws relating to the sale of these
securities.

     We hereby  consent  to the  filing of this  opinion  as an  exhibit  to the
Registration Statement that the Company is about to file with the Securities and
Exchange  Commission.  Such consent shall not be deemed to be an admission  that
this firm is within the  category of persons  whose  consent is  required  under
Section 7 of the 1933 Act or the  regulations  promulgated  pursuant to the 1933
Act.

                                           Very truly yours,


                                           /s/ SMITH, ANDERSON, BLOUNT, DORSETT,
                                               MITCHELL & JERNIGAN, L.L.P.


