Singapore’s ASMPT, a major supplier of semiconductor assembly and packaging equipment, has announced the closure of its manufacturing plant in Shenzhen, China. The move, revealed on August 11, 2025, will result in the layoff of approximately 950 employees and marks a significant shift in the company’s operations within its largest market.
The decision was described by ASMPT as “tough but necessary,” driven by the need to optimize its global supply chain in response to evolving market dynamics and customer needs. The company expects that shutting down the ASMPT Equipment (Shenzhen) subsidiary will enhance cost competitiveness, agility, and resilience for its global manufacturing operations. Despite the magnitude of the closure, other facilities—including ASMPT’s expanding plant in Huizhou—remain unaffected, ensuring continued service to its worldwide customer base.
Financially, the closure will incur a one-time restructuring charge of about RMB360 million ($50million), which covers severance payments, shutdown expenses, and inventory write-offs. This action is projected to yield annual operating cost savings of roughly 115million yuan, reflecting ASMPT’s determination to pursue sustainable long-term growth and operational excellence. In 2024, China contributed nearly 40% of the company’s total revenue, highlighting the market’s strategic importance for ASMPT.
To support workers affected by the shutdown, ASMPT has pledged comprehensive assistance and ensured that all transitions are handled with fairness and dignity. The company’s restructuring follows recent strong booking results for the first half of 2025, but also comes amid mounting pressures on China’s semiconductor supply chain. With this strategic realignment, ASMPT is positioning itself for future challenges in the ever-evolving global electronics manufacturing landscape.
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(Source: ASMPT Press Release | GlobalSMT | DigiTimes)
