Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  HILLER NORBERT
 2. Date of Event Requiring Statement (Month/Day/Year)
10/18/2011		 3. Issuer Name and Ticker or Trading Symbol
CREE INC [CREE]
(Last)
(First)
(Middle)
C/O CREE, INC., 4600 SILICON DRIVE		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
EXECUTIVE VICE PRESIDENT
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

DURHAM, NC 27703		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock 22,246 (1)
D
 
Common Stock 181
I
By Spouse

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Nonqualified Stock Option (Right to Buy) 02/05/2011(2) 02/05/2015 Common Stock 60,000 $ 31.12 D  
Nonqualified Stock Option (Right to Buy) 09/02/2011 09/02/2015 Common Stock 10,000 $ 22.9 D  
Nonqualified Stock Option (Right to Buy) 09/01/2011(3) 09/01/2016 Common Stock 23,333 $ 35.89 D  
Nonqualified Stock Option (Right to Buy) 09/01/2011(4) 09/01/2017 Common Stock 30,000 $ 55.3 D  
Nonqualified Stock Option (Right to Buy) 09/01/2012(5) 09/01/2018 Common Stock 40,000 $ 30.92 D  
Nonqualified Stock Option (Right to Buy) 09/02/2011 09/02/2015 Common Stock 333 $ 22.9 I By Spouse
Nonqualified Stock Option (Right to Buy) 09/01/2011(6) 09/01/2016 Common Stock 1,000 $ 35.89 I By Spouse
Nonqualified Stock Option (Right to Buy) 09/01/2011(7) 09/01/2017 Common Stock 1,555 $ 55.3 I By Spouse
Nonqualified Stock Option (Right to Buy) 09/01/2012(8) 09/01/2018 Common Ctock 1,500 $ 30.92 I By Spouse

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
HILLER NORBERT
C/O CREE, INC.
4600 SILICON DRIVE
DURHAM, NC 27703		       EXECUTIVE VICE PRESIDENT  

Signatures

Norbert Hiller 10/26/2011
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Includes 15,400 shares of restricted stock vesting as to 5,250 shares on September 1, 2012; 4,450 shares on September 1, 2013; 3,450 shares on September 1, 2014; and 2,250 shares on September 1, 2015.
(2) Option vests as to 20,000 shares on each of February 5, 2011, February 5, 2012 and February 5, 2013.
(3) Option vests as to 11,667 shares on September 1, 2011 and as to 11,666 shares on September 1, 2012.
(4) Option vests as to 10,000 shares on each of September 1, 2011, September 1, 2012 and September 1, 2013.
(5) Option vests as to 13,334 shares on September 1, 2012 and as to 13,333 shares on each of September 1, 2013 and September 1, 2014.
(6) Option vests as to 500 shares on each of September 1, 2011 and September 1, 2012.
(7) Option vests as to 519 shares on September 1, 2011 and as to 518 shares on each of September 1, 2012 and September 1, 2013.
(8) Option vests as to 500 shares on each of September 1, 2012, September 1, 2013 and September 1, 2014.

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