Sun has transferred the Puerto Rico manufacturing facility it acquired with the StorageTek acquisition to electronics manufacturer Solectron. Financial terms were not disclosed for the multi-year contract involved.
Solectron is an electronics manufacturer that has signed a number of deals recently to manage the manufacturing operations of electronics companies. Often the manufacturing assets and the employees involved are transferred to Solectron. Solectron then manages the assets more efficiently to deliver lower-cost product at dependable quality and delivery time level to its customers.
As a result of this deal Sun's acquired StorageTek manufacturing operations costs should go down, meaning its unit product build cost go down, meaning that, in turn, it can lower prices to customers and/or increase its margin. Good news all round. Sun DMG could be becoming a fab-less storage company.