ASMPT, a Singapore-based semiconductor assembly and packaging equipment maker, will close its Shenzhen factory and cut 950 jobs as part of restructuring its mainland China operations.

The company will take a one-time charge of about US$50 million for severance, shutdown costs, and inventory write-offs.

The move aims to adjust to changing market conditions in China, ASMPT’s largest market.

It reported HK$6.5 billion (US$832 million) revenue for the first half of 2025, with bookings up 12.4% to HK$7.1 billion (US$904.5 million), but net profit down 30.9% to HK$216.9 million (US$27.6 million).

ASMPT still operates a plant in Huizhou, Guangdong province, where it invested in a new AI-powered chip packaging equipment center.

China accounted for nearly 40% of ASMPT’s 2024 revenue, with Europe and the Americas contributing 19% and 16%, respectively.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Equipment makers optimize operations despite strong market growth

ASMPT’s plant closure appears counterintuitive given the semiconductor equipment industry’s strong growth trajectory.

The global semiconductor equipment market is projected to expand from $80 billion in 2025 to approximately $135 billion by 2033, representing a 7% annual growth rate 1.

Meanwhile, the broader semiconductor industry is expected to reach $697 billion in 2025, marking an 11.2% increase from 2024 2.

This suggests ASMPT’s decision stems from operational efficiency concerns rather than market decline, as the company explicitly cited the need to “better align with evolving market dynamics and customer needs.”

The $115 million in expected annual cost savings from the closure indicates the company is prioritizing margin improvement over capacity expansion, even as industry demand grows.

2️⃣ Semiconductor equipment companies shift from acquisition-led growth to operational consolidation

ASMPT’s current restructuring marks a strategic pivot from its historical expansion-through-acquisition approach.

Recent ASMPT developments