Spansion: $50M/Q savings thanks to manufacturing gains

Mar. 19, 2008 – Spansion says it has achieved manufacturing efficiencies in its plants in the US and Japan to the extent that it expects to reduce outsourced work by ~$50M/quarter in 1H08 vs. 2H07.

The company cited increased output in its Fab 25 (Austin, TX) and SP1 (Aizu-Wakamatsu, Japan) facilities that will reduce reliance on foundries and subcontractors, particularly for 90nm products. Further, new testing capabilities are generating “significant increases in both throughput and yield” particularly for 65nm products. Fab 25 is “exceed[ing] expectations in both yield and output” for 90nm products, while SP1 has ramped 300mm wafers to 2000 wafers/week of 65nm MirrorBit flash memory products. Spansion plans to ramp to 45nm at SP1 in fiscal 2009, generating further cost efficiencies, the company noted.

“Last year, Spansion committed to reducing dependencies on external foundry sources and streamlining our own manufacturing and test capabilities, with the ultimate goal being significant cost savings,” said Bertrand Cambou, president and CEO of Spansion, in a statement. “We have met that challenge and are committed to continuing to prove our ability to lead in this highly competitive field.”

The company added that it plans to continue long-term partnerships with certain subcontractors, including ChipMOS for wafer sorting, as well as foundry SMIC, which should ramp to 300mm/65nm production by year’s end.


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