Kulicke & Soffa to shut down electronics assembly equipment business
Kulicke & Soffa’s board of directors has approved a strategic plan to cease operations of its electronics assembly equipment business. The decision aims to refocus the company on core semiconductor assembly business opportunities and improve long-term financial performance, according to a regulatory filing.
The wind-down process is subject to consultations with the relevant works council and union representatives, which are expected to begin in the third fiscal quarter of 2025.
The decision follows a thorough review of the financial performance and product development pace within the electronics assembly equipment segment. As a result of this shutdown, Kulicke & Soffa anticipates pre-tax charges between USD 86 million and USD 100 million. This includes an estimated USD 11 million to USD 13 million in severance and employee-related costs, as well as between USD 12 million and USD 15 million in contract termination charges.
The majority of wind-down activities are expected to be completed by the first half of fiscal 2026, with limited service support continuing thereafter to fulfill remaining customer obligations.
Kulicke & Soffa further states that it will "continue to focus its development resources on other growth-centric opportunities supporting technology changes within the Thermo-compression, Vertical Fan-Out, Automotive and Advanced Dispense markets."
Once the wind-down is completed, the company expects a revenue reduction of approximately USD 25 million to USD 29 million.
