<ARTICLE> 5
<LEGEND>
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
ACCOMPANYING  FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>                         0000895419
<NAME>                        CREE RESEARCH, INC.
<MULTIPLIER>                  1,000
<CURRENCY>                    U.S. DOLLARS
       
                                            
<PERIOD-TYPE>                                  6-MOS
<FISCAL-YEAR-END>                              JUN-27-1999
<PERIOD-START>                                 JUN-29-1998
<PERIOD-END>                                   DEC-27-1998
<EXCHANGE-RATE>                                     1
<CASH>                                         12,769
<SECURITIES>                                      905
<RECEIVABLES>                                  12,261
<ALLOWANCES>                                      151
<INVENTORY>                                     3,402
<CURRENT-ASSETS>                               30,141
<PP&E>                                         56,989
<DEPRECIATION>                                 12,017
<TOTAL-ASSETS>                                 78,103
<CURRENT-LIABILITIES>                           5,758
<BONDS>                                             0
<PREFERRED-MANDATORY>                               0
<PREFERRED>                                         0
<COMMON>                                       49,648
<OTHER-SE>                                     10,341
<TOTAL-LIABILITY-AND-EQUITY>                   59,989
<SALES>                                        26,317
<TOTAL-REVENUES>                               26,317
<CGS>                                          14,044
<TOTAL-COSTS>                                  19,071
<OTHER-EXPENSES>                                    0
<LOSS-PROVISION>                                    0
<INTEREST-EXPENSE>                              (115)
<INCOME-PRETAX>                                 7,246
<INCOME-TAX>                                    2,029
<INCOME-CONTINUING>                             5,217
<DISCONTINUED>                                      0
<EXTRAORDINARY>                                     0
<CHANGES>                                           0
<NET-INCOME>                                    5,217
<EPS-PRIMARY>                                    0.41
<EPS-DILUTED>                                    0.39