SAN JOSE, Calif., April 16, 2012 /PRNewswire/ -- SunPower Corp. (NASDAQ: SPWR) today announced an update to its manufacturing cost reduction initiatives.
"Reducing our manufacturing costs and extending our technology advantage with our industry leading Maxeon Gen E cells remains a top priority for the company," said Tom Werner, SunPower president and CEO. "Operationally, our step reduction program is on plan as we now have 2 lines running under our new process and expect to have all 12 lines at our cell fabrication plant 2 (Fab 2) converted by the end of 2012.
"Additionally, as a result of our continued cost reduction progress at our Fab 2 and Fab 3 manufacturing facilities, we have made the strategic decision to consolidate our Philippine manufacturing operations into Fab 2 and begin repurposing Fab 1 this quarter. This decision will enable us to rationalize our operating expenses, improve supply chain efficiency and lower our manufacturing cost per watt through scale advantages. The reduction of approximately 125 megawatts of nameplate capacity at Fab 1 will be partially offset by further improvement in yields and equipment efficiency in Fab 2 and Fab 3," concluded Werner.
The company's manufacturing cost reduction initiatives remain on track, including its step reduction program which will reduce the number of steps in the manufacturing process by 15 percent by the end of 2012. Combined with additional yield and equipment efficiency improvements, the company expects to achieve its cost goal of approximately $0.86 per Watt, on an efficiency adjusted basis, exiting 2012.As a component of repurposing, SunPower is working with Deca Technologies and others on the use of the Fab 1 facility. SunPower is a minority shareholder in Deca Technologies, an electronic interconnect solutions provider that initially offers wafer level chip scale packaging services to the semiconductor industry.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV