SunPower Corp. has announced an update to its manufacturing structure. As production ramps up at its Fab 2 and Fab 3 manufacturing facilities, the company plans to shut down operations at Fab 1. All of the facilities are located in the Philippines.
Employees at Fab 1 will be transferred to Fab 2 or have the opportunity to work for potential Fab 1 tenants. SunPower will transfer some equipment from Fab 1 to Fab 2 to reduce manufacturing constraints.
‘Operationally, our step-reduction program is on plan, as we now have two 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,’ explains Tom Werner, SunPower president and CEO.
‘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,’ Werner continues.
The shutdown of Fab 1 is expected to result in the reduction of approximately 125 MW of nameplate capacity. This total is expected to be partially offset by ‘further improvement in yields and equipment efficiency in Fab 2 and Fab 3,’ Werner says.
Combined with additional yield and equipment efficiency improvements, the company expects to achieve its cost goal of approximately $0.86/W, on an efficiency-adjusted basis, exiting 2012.