[News] ASMPT to Close Shenzhen Facility: Nearly 1K Jobs Affected, Raising Chip Industry Concerns in China

Singapore-headquartered ASMPT, which specializes in semiconductor assembly and packaging solutions, announced on August 11^th that it will strategically restructure its manufacturing operations in China by closing Advanced Semiconductor Equipment (Shenzhen) Co., Ltd. in Bao’an District, Shenzhen, which is expected to impact roughly 950 employees.

According to the company, the move is aimed at streamlining its global supply chain to better respond to changing market and customer needs, as well as improving the cost efficiency, flexibility, and resilience of its manufacturing worldwide.

As ijiwei points out, ASMPT disclosed earlier that the voluntary liquidation will incur a one-time restructuring cost of around RMB 360 million, covering severance, shutdown expenses, and inventory write-offs. However, the move is expected to save about RMB 115 million annually in operating costs based on current production levels, the report adds.

The report suggests that according to AEC’s audited financials for the year ending December 31, 2024, it recorded about RMB 485 million in revenue and RMB 20.6 million in net profit, with net assets of roughly RMB 444 million.

ASMPT’s Importance to China

Notably, EE Times China highlights that this chipmaking tool company, founded in Hong Kong in 1975, plays a key role for China. While its thermocompression bonding (TCB) tech is praised as “the second most important after lithography machines,” China made up 38% of ASMPT’s revenue in 2024—its largest market—surpassing Europe (19%) and the U.S. (16%), the report adds.

As Reuters reported, in November 2024, ASMPT ended takeover talks without naming the buyer. Sources said KKR had held early discussions and considered the company’s China operations but dropped the deal over regulatory and geopolitical risks, the report noted.

EETimes China notes that ASMPT’s semiconductor solutions division, known as the SEMI business, saw a 6.9% year-over-year revenue growth in 2024 and accounted for 51% of the company’s total sales. Key clients for its advanced packaging, as per the report, include TSMC, Samsung and SK hynix.

On the other hand, ASMPT’s SMT business, specializing in surface mount technology, reportedly accounted for 49% of its 2024 revenue. Serving industries like consumer electronics, automotive, communications, and industrial automation, its client bases include Apple suppliers and giants such as Samsung, Huawei, and Xiaomi, EETimes China reports.

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(Photo credit: ASMPT)