ASMPT to Shut Shenzhen Plant, Cut 950 Jobs Amid China Restructuring
- tech360.tv
- 1 day ago
- 2 min read
Singapore-based semiconductor equipment maker ASMPT will close its Shenzhen factory and lay off 950 workers as part of a major restructuring of its operations in mainland China.
The Hong Kong-listed company announced the move Monday, citing the need to align with evolving market dynamics and customer needs. The closure affects ASMPT Equipment (Shenzhen), which is part of the firm’s semiconductor solutions segment.
ASMPT said it will implement comprehensive support measures to assist affected employees during the transition. Other global manufacturing operations will remain unaffected.
The company expects to incur a one-time restructuring charge of USD 50 million, or about 360 million yuan, covering severance, shutdown costs and inventory write-offs.
The voluntary liquidation is projected to save ASMPT approximately 115 million yuan annually in operating costs, based on current production levels.
Shares of ASMPT rose 2.1% to HKD 70.20 on Monday following the announcement.
The restructuring comes shortly after Chief Executive Officer Robin Ng said the company had better-than-expected bookings for the first half of 2025.
In the first six months of 2025, ASMPT reported flat revenue of HKD 6.53 billion (USD 832 million), while bookings rose 12.4% to HKD 7.11 billion. Net profit fell 30.9% to HKD 216.9 million.
Founded in 1975, ASMPT continues to operate a plant in Huizhou, Guangdong province, which it has been expanding.
According to a September report by Huizhou Daily, the company invested over 50 million yuan to establish an artificial intelligence-powered chip packaging equipment manufacturing centre at the Huizhou facility.
China remains ASMPT’s largest market, contributing nearly 40% of its revenue in 2024. Europe and the Americas followed with 19% and 16%, respectively.
ASMPT’s surface-mount technology is used by major clients including Apple contract manufacturers, Xiaomi and Huawei Technologies.
ASMPT to close Shenzhen plant, laying off 950 workers
Company to take USD 50 million restructuring charge
Annual savings from closure estimated at 115 million yuan
Source: REUTERS
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