Enovix Corporation (“Enovix”) (Nasdaq: ENVX), an advanced silicon
battery company, today announced that it has initiated a strategic
realignment of Fab1 in Fremont designed to refocus the facility
from a manufacturing hub to its “Center for Innovation,” focused on
new product development. This move is supportive of the Company’s
strategy to locate high-volume manufacturing in Asia near customers
and suppliers while locating technology development in both Silicon
Valley and Asia.
Shifting Fab1’s focus will result in a reduction of the
workforce in Fremont that had been dedicated to supporting 24/7
manufacturing by approximately 185 personnel, including over 125
contractors. Enovix expects this restructuring to be completed
during the fourth quarter of 2023 and result in annualized savings
of approximately $22 million.
“We do not take these decisions lightly and after careful
consideration we determined these changes are necessary to set the
company up for long-term success,” said Dr. Raj Talluri, President
and CEO of Enovix. “It has become clear that Fremont is best
positioned to be our Center for Innovation complementing our
high-volume manufacturing in Asia.”
Continued Dr. Talluri, “In addition to these actions, we have
re-prioritized our activities in Fab1. We are moving from a
horizontal business strategy focused on serving hundreds of
customers with a standard-sized battery to a vertical business
strategy focused on a smaller group of very large customers who
require custom cells, which allows us the most efficient path to
scale. This shift has been informed by our strong engagement with
leading smartphone OEMs who we anticipate having high volume needs
for our battery in 2025 and, in turn, qualification samples in the
near-term.
"Because of this immediate need and the additional resources
required to make custom batteries for the U.S. Army, I directed our
teams during the third quarter to reduce production of our small,
standard-sized IoT and Wearable cells out of Fab1 and change over
the tooling to make batteries for these larger custom cell
customers.”
Due to this strategic shift, Enovix in the third quarter of 2023
cut off production at approximately 24,000 small cell units, less
than management’s guidance of 36,000 cells. Enovix did produce
enough custom cells in the third quarter, primarily for the U.S.
Army program, that it expects to recognize approximately $200,000
of total revenue.
“Fab1 has fulfilled its intended purpose in 2023, which was to
1) drive overall yield on the Gen1 equipment and generate the
learning necessary to launch with Fab2/Gen2 yields at a high level
2) build enough small cells to fulfill customer qualification
demand and 3) build enough standard small cells to support customer
product launches to bridge over to production in Malaysia,” said
Ajay Marathe, COO of Enovix. “The operations team is focused on
executing upon our rigorous processes to test and qualify our Gen2
manufacturing equipment in order to graduate from producing
thousands of units to millions of units in 2024.”
Associated with the Fab1 strategic realignment, Enovix expects
to take total restructuring charges of approximately $2.5 million,
primarily in the third quarter of 2023, and expects to recognize
accelerated depreciation expenses of approximately $36 million for
Gen1 equipment between the fourth quarter of 2023 and the first
quarter of 2024. In 2024, Fab1 will shift to housing the R&D
Agility Line and will be used for new technology development,
materials research, process engineering, and customer sampling.
Enovix also plans to add dry room space at Fab1 for battery
prototyping work to support engagements with Automotive OEMs.
For more details on the Agility R&D Line, please see an
article by Ajay Marathe:
https://enovix.medium.com/our-path-to-high-volume-manufacturing-6264681857df
or listen to the Enovix Journey to Scale podcast:
https://www.buzzsprout.com/2240960/13579653-path-to-high-volume-manufacturing-next-gen-batteries-with-ajay-marathe-coo-of-enovix
About EnovixEnovix is on a mission to power the
technologies of the future. Everything from IoT, mobile and
computing devices, to the vehicle you drive, needs a better
battery. The company’s disruptive architecture enables a battery
with high energy density and capacity without compromising safety.
Enovix is scaling its silicon-anode, lithium-ion battery
manufacturing capabilities to meet customer demand. For more
information visit www.enovix.com and follow us on LinkedIn.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, about us and our industry that involve
substantial risks and uncertainties. Forward-looking statements
generally relate to future events or our future financial or
operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
“will,” “goal,” “prioritize,” “plan,” “target,” “expect,” “focus,”
“look forward,” “opportunity,” “believe,” “estimate,” “continue,”
“anticipate,” and “pursue” or the negative of these terms or
similar expressions. Forward-looking statements in this press
release include, but are not limited to, statements regarding our
expectations regarding the success of our strategic realignment
efforts of our manufacturing operations, our financial and business
performance, and projected improvements in our manufacturing,
commercialization and R&D activities. Actual results could
differ materially from these forward-looking statements as a result
of certain risks and uncertainties, including, without limitation,
our ability to capitalize on our current strategy, obtain
substantial cost savings, improve our manufacturing footprint,
improve energy density among our products, establish sufficient
manufacturing and optimize manufacturing processes to meet demand,
source or establish supply relationships, obtain adequate funds to
acquire our next manufacturing facility, and obtain market
acceptance of our products, as well as changes in consumer
preferences or demands, changes in industry standards, the impact
of technological development and competition, and global economic
conditions, including inflationary and supply chain pressures, and
political, social, and economic instability, including as a result
of armed conflict, war or threat of war, terrorist activity or
other security concerns or trade and other international disputes
that could disrupt supply or delivery of, or demand for, our
products. For additional information on these risks and
uncertainties and other potential factors that could affect our
business and financial results or cause actual results to differ
from the results predicted, please refer to our filings with the
Securities and Exchange Commission (the “SEC”), including in the
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of our most
recently filed Annual Report on Form 10-K, Quarterly Report on Form
10-Q and other documents that we have filed, or that we will file,
with the SEC. Any forward-looking statements made by us in this
press release speak only as of the date on which they are made and
subsequent events may cause these expectations to change. We
disclaim any obligations to update or alter these forward-looking
statements in the future, whether as a result of new information,
future events or otherwise, except as required by law.
For investor and media inquiries, please
contact:
Enovix CorporationCharles AndersonPhone: +1 (612) 229-9729Email:
canderson@enovix.com
For media inquiries, please
contact:
Enovix CorporationKristin AtkinsPhone: +1 (650)
815-6934Email: katkins@enovix.com
Enovix (NASDAQ:ENVX)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Enovix (NASDAQ:ENVX)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024