Singapore-based ASMPT, which makes semiconductor assembly and packaging equipment, will close its factory in Shenzhen and lay off 950 workers to streamline its operations in mainland China, the company’s largest market.
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Shutting down ASMPT Equipment (Shenzhen), which falls under the company’s semiconductor solutions segment, “was a tough but necessary decision” to better align the company “with evolving market dynamics and customer needs”, according to the Hong Kong-listed firm’s statement on Monday.
“Comprehensive support measures are being put in place to assist impacted staff through the transition,” ASMPT said. “Other key global manufacturing operations are unaffected by the closure.”
ASMPT earlier disclosed that it would incur a one-time restructuring charge of around 360 million yuan (US$50 million), covering severance, shutdown expenses and inventory write-offs. The company expected the voluntary liquidation to save it 115 million yuan annually in operating costs based on current production levels.
The company’s shares closed up 2.1 per cent to HK$70.20 on Monday.
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The restructuring of ASMPT’s mainland operations appears to temper the optimism expressed by CEO Robin Ng last month, when he said the firm posted “better-than-expected bookings for the first half of 2025”.
