ASMPT, a Singapore-based manufacturer of semiconductor and electronics equipment, has announced it will close its Shenzhen factory, leading to the loss of about 950 jobs. The company called the decision “tough but necessary” as it works to streamline operations in its largest market.
The closure will result in a one-time restructuring cost of about RMB 360 million (US 50 million). This amount will be used to cover severance pay, shutdown expenses and inventory write-offs. Despite the immediate costs, ASMPT expects the move to save around RMB 115 million annually in operating expenses, based on current production levels.
The company stated that its other manufacturing facilities around the world will not be affected. It also said that it will provide full support to the employees impacted by this closure during the transition period.
This decision comes at a time of changing market conditions and shifts in customer demand. China contributed nearly 40 percent of ASMPT’s revenue in 2024, making it the company’s most important market, ahead of both Europe and the United States.
Following the announcement, ASMPT’s share price rose by 2.1 percent, ending the day at HK 70.20.
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