Closed by ASMPT: Advanced Semiconductor Packaging Technology to Shut Down Shenzhen Facility, Affecting Approximately 950 Employees
Gloon Hub August 11 | Advanced Semiconductor Packaging Technology (ASMPT) will optimize its manufacturing operations in China, deciding to close its subsidiary Advanced Semiconductor Equipment (Shenzhen) Co., Ltd. (AEC), which will affect approximately 950 employees. The company will liquidate AEC to optimize its global supply chain and make it more responsive to the ever-changing market dynamics and customer needs. The board believes that voluntary liquidation is in line with the best interests of the company and its shareholders.
AEC is a subsidiary of the company's semiconductor solutions division, primarily engaged in internal manufacturing business and having a factory located in Shenzhen, China. Closing AEC will affect approximately 950 employees, expected to enhance the company's global manufacturing and supply chain operations' competitiveness, flexibility, and resilience. The company's other main global manufacturing businesses are not affected by this closure. The supply chain has been fully adjusted to ensure uninterrupted delivery of products and services to all customers, without affecting product or service quality or availability.
ASMPT estimates that the one-time restructuring cost resulting from the voluntary liquidation of AEC will be approximately CNY 3.6 billion, including severance fees, shutdown-related costs, and inventory write-offs. The estimated annual savings (based on current production levels) are expected to be around CNY 1.15 billion, thereby improving the company's operating cost efficiency.
The board expects that voluntary liquidation will not have any significant adverse impact on the company's operations.