Singapore-headquartered ASMPT, a leading provider of semiconductor assembly, packaging, and SMT (surface-mount technology) solutions, announced on August 11 that it will close its wholly owned subsidiary, Advanced Semiconductor Equipment (Shenzhen) Co., Ltd. (AEC), in Bao'an District, Shenzhen. The move, part of a strategic restructuring of its China manufacturing operations, is expected to affect approximately 950 employees.

The company said the decision aims to streamline its global supply chain, enhance cost efficiency, and improve operational flexibility and resilience in response to rapidly changing market and customer demands. ASMPT stressed that the closure will not disrupt operations at its other manufacturing sites worldwide, nor affect the quality or stability of its product supply.

According to audited financials prepared under Chinese accounting standards, AEC generated RMB 485 million in internal revenue and RMB 20.6 million in net profit in 2024, with net assets of RMB 444 million as of year-end. ASMPT anticipates a one-time restructuring cost of about RMB 360 million—covering severance packages, shutdown expenses, and inventory write-offs—but projects annual savings of roughly RMB 115 million based on current output.

China has long been ASMPT's largest market, contributing 38% of its 2024 revenue, ahead of Europe (19%) and the U.S. (16%). The company's semiconductor solutions division (SEMI business), which includes advanced packaging technologies such as thermocompression bonding (TCB), posted 6.9% year-over-year revenue growth and accounted for 51% of total sales in 2024. Key customers include TSMC, Samsung, and SK hynix. Its SMT division contributed the remaining 49%, serving industries from consumer electronics to automotive and telecommunications, with clients including Apple suppliers, Samsung, Huawei, and Xiaomi.

Founded in Hong Kong in 1975 and now headquartered in Singapore, ASMPT is also a founding member of the Semiconductor Climate Consortium, emphasizing sustainability and corporate responsibility alongside technological innovation.