Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

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Property and Equipment
 3 Months Ended
Mar. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Property and equipment as of March 31, 2024 and December 31, 2023, consisted of the following (in thousands).
March 31, 2024 December 31, 2023
Machinery and equipment $ 99,031  $ 100,335 
Building and leasehold improvements 38,321  36,651 
Office equipment and software 4,281  2,561 
Furniture and fixtures 904  898 
Land 1,433  1,433 
Construction in process 80,056  68,958 
Total property and equipment 224,026  210,836 
Less: accumulated depreciation (64,862) (44,365)
Property and equipment, net $ 159,164  $ 166,471 
We are in the process of installing equipment in our facility located in Malaysia, which contributed to an increase in construction in process category. Furthermore, in the fourth quarter of 2023, we announced our strategic realignment of our first production line (“Fab1”) in Fremont and transformed our Fremont location to “Center for Innovation,” focused on new product development. In connection with this strategic realignment, we recognized accelerated depreciation expenses of approximately $18.4 million for Fab1 equipment in the first quarter of 2024, of which approximately $18.3 million and $0.1 million were recorded as research and development expense, and selling, general and administrative expense, respectively, in the Condensed Consolidated Statements of Operations. The following table summarizes the depreciation and amortization expenses related to property and equipment, which are recorded within cost of revenue, research and development expense and selling, general and administrative expense in the Condensed Consolidated Statements of Operations (in thousands).
Quarters Ended
March 31, 2024 April 2, 2023
Depreciation expense $ 23,799  $ 3,455