SHENZHEN – ASMPT will close its Advanced Semiconductor Equipment (Shenzhen) facility in Bao’an District, affecting about 950 employees as part of a strategic restructuring of its China operations.

The Singapore-headquartered semiconductor assembly and packaging solutions provider said the move is intended to streamline its global supply chain and improve cost efficiency. The closure will incur a one-time cost of roughly RMB 360 million, covering severance, shutdown expenses and inventory write-offs, but is projected to save about RMB 115 million annually.

The Shenzhen site generated RMB 485 million in revenue and RMB 20.6 million in net profit last year. China accounted for 38% of ASMPT’s revenue last year, underscoring its importance to the company’s global business.