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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000895419-10-000064.txt : 20101110
<SEC-HEADER>0000895419-10-000064.hdr.sgml : 20101110
<ACCEPTANCE-DATETIME>20101110130831
ACCESSION NUMBER:		0000895419-10-000064
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20101108
FILED AS OF DATE:		20101110
DATE AS OF CHANGE:		20101110

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Kelley Stephen Douglas
		CENTRAL INDEX KEY:			0001443674

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21154
		FILM NUMBER:		101179110

	MAIL ADDRESS:	
		STREET 1:		1716 MACGREGOR DRIVE
		CITY:			PLANO
		STATE:			TX
		ZIP:			75093

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CREE INC
		CENTRAL INDEX KEY:			0000895419
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				561572719
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			0626

	BUSINESS ADDRESS:	
		STREET 1:		4600 SILICON DR
		CITY:			DURHAM
		STATE:			NC
		ZIP:			27703
		BUSINESS PHONE:		9193135300

	MAIL ADDRESS:	
		STREET 1:		4600 SILICON DR
		CITY:			DURHAM
		STATE:			NC
		ZIP:			27703-8475

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CREE RESEARCH INC /NC/
		DATE OF NAME CHANGE:	19940224
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2010-11-08</periodOfReport>

    <issuer>
        <issuerCik>0000895419</issuerCik>
        <issuerName>CREE INC</issuerName>
        <issuerTradingSymbol>CREE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001443674</rptOwnerCik>
            <rptOwnerName>Kelley Stephen Douglas</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O CREE, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>4600 SILICON DRIVE</rptOwnerStreet2>
            <rptOwnerCity>DURHAM</rptOwnerCity>
            <rptOwnerState>NC</rptOwnerState>
            <rptOwnerZipCode>27703</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>EXECUTIVE VICE PRESIDENT, COO</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>COMMON STOCK</value>
            </securityTitle>
            <transactionDate>
                <value>2010-11-08</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>11667</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>35.89</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>40599</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>COMMON STOCK</value>
            </securityTitle>
            <transactionDate>
                <value>2010-11-08</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>14369</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>55.17</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>26230</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>NONQUALIFIED STOCK OPTION (RIGHT TO BUY)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>35.89</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2010-11-08</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>11667</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2010-09-01</value>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <value>2016-09-01</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>COMMON STOCK</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>11667</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>23333</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by Mr. Kelley on December 4, 2009.</footnote>
        <footnote id="F2">The price reported in Column 4 is a weighted average sale price.  These shares were sold in multiple transactions at prices ranging from $55.00 to $55.2525, inclusive.  Mr. Kelley undertakes to provide to Cree, Inc., any security holder of Cree, Inc., or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote.</footnote>
        <footnote id="F3">The option vests as to 11,667 shares on each of September 1, 2010 and September 1, 2011 and as to 11,666 shares on September 1, 2012.</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>Tamara Cappelson, as agent for Stephen D. Kelley</signatureName>
        <signatureDate>2010-11-10</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-24
<SEQUENCE>2
<FILENAME>poa_kelley.htm
<DESCRIPTION>POWER OF ATTORNEY - STEPHEN D. KELLEY
<TEXT>
<HTML><BODY><PRE>POWER OF ATTORNEY





I, the person whose signature appears below, hereby appoint Adam H. Broome, Secretary of Cree, Inc. (the "Company"),

and Tamara Cappelson, Stock Plan Manager of the Company, and each of them individually, as my attorneys-in-fact with

the power and authority:



* to execute and file with the U.S. Securities and Exchange Commission on my behalf, pursuant to Section 16(a) of the

  Securities Exchange Act of 1934 and the rules thereunder: (1) Form ID, Uniform Application for Access Codes to File

  on EDGAR; (2) Initial Statement of Beneficial Ownership of Securities on Form 3; (3) Statements of Changes in Beneficial

  Ownership on Form 4; and (4) Annual Statements of Changes in Beneficial Ownership on Form 5; and any amendments thereto,

  with respect to my service as a director and/or officer of the Company and my holdings of and transactions in Company

  securities of which I may be deemed the beneficial owner;



* to do and perform on my behalf any and all other acts necessary or desirable to complete, execute and timely file such

  Forms ID, 3, 4 and 5 and any amendments thereto with the U.S. Securities and Exchange Commission and, if necessary, any

  stock exchange or similar authority, including but not limited to the power to designate any person then serving as a

  director or officer of the Company to be an additional or substitute attorney-in-fact under this Power of Attorney with

  the same power and authority as if such person were named herein, and to take any other action in connection with the

  foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of or legally

  required by me, it being understood that the documents executed by such attorney-in-fact on my behalf pursuant to this

  Power of Attorney shall be in such form and shall contain such terms and conditions as the attorney-in-fact may approve

  in his or her discretion.



The authority granted under this Power of Attorney shall continue in effect for each attorney-in-fact named above until I

am no longer required to file reports with respect to my holdings of and transactions in Company securities or unless earlier

revoked in a writing signed by me and delivered to such attorney-in-fact.  I acknowledge that neither the attorneys-in-fact

nor the Company is assuming any of my responsibilities to comply with Section 16(a) of the Securities Exchange Act of 1934.



IN WITNESS WHEREOF, I have signed this Power of Attorney on the date shown below.







/s/ Stephen D. Kelley

Signature





Stephen D. Kelley

Typed or Printed Name





August 20, 2008

Date Signed

</PRE></BODY></HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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