ASMPT, a Singapore-based semiconductor and electronic manufacturer, announced today that it has decided to close the advanced semiconductor equipment factory in Baoan District, Shenzhen, which is a strategic optimization adjustment for China's manufacturing operations.
ASMPT news release stated that in order to optimize and adjust China's manufacturing operation strategy, it was decided to close the advanced semiconductor equipment (Shenzhen) Co., Ltd. in Baoan District, Shenzhen. The factory-based company's semiconductor solution branch will affect about 950 employees. ASMPT said that the decision is difficult, but it is necessary to optimize ASMPT's global supply chain to better meet changing market and customer needs, and to improve the cost competitiveness, flexibility and operational nature of global manufacturing operations.
ASMPT said that other key manufacturing bases around the world are not affected, and it also means that the supply chain system has been fully coordinated and the quality and supply of products and services will not be affected in any way. Due to the economic recession, consumption shrinkage and the multiple impacts of the US technology-led technology, China has seen a trend of semiconductor industry shutdowns in recent years. According to Hong Kong media reports, there were 5,746 semiconductor companies applying for registration in China in 2022, a 68% increase from 3,420 in 2021.