Singapore-based semiconductor equipment maker ASMPT has announced the closure of its Shenzhen factory, which will result in the layoff of around 950 workers. The company said the move is part of a restructuring plan to cut costs and adjust to changing market conditions.
ASMPT expects to spend about US$50 million on severance pay, shutdown costs, and inventory write-offs. However, it said the closure will save the company nearly 115 million yuan (around US$15.8 million) every year moving forward.
While management described the decision as “tough but necessary,” the announcement comes as a blow to workers in Shenzhen. ASMPT has promised to provide support measures to help those affected by the shutdown.
The company reported flat revenues in the first half of 2025, with profits dropping by nearly a third despite a rise in new orders. At the same time, ASMPT is expanding its operations in Huizhou, another city in Guangdong province, where it recently invested in an AI-powered chip packaging equipment center.
China remains ASMPT’s biggest market, accounting for almost 40% of its revenue last year. Its equipment is used by major electronics manufacturers, including suppliers for Samsung, Apple, Xiaomi, and Huawei.
Read the original article posted at the South China Morning Post website here.
