Item 2.05 Costs Associated with Exit or Disposal Activities.

On November 12, 2008, Kulicke and Soffa Industries, Inc. (the "Company") committed to a plan to reduce its global workforce by approximately 240 employees (the "Cost Reduction Plan"). In light of deteriorating conditions in the global economy and projected weaker demand for the Company's products and services, management determined that it was in the best interests of the Company to reduce compensation costs. The Company expects that the Cost Reduction Plan will be substantially complete by March 31, 2009.

The Company anticipates that in connection with implementing the Cost Reduction Plan, it will record a pre-tax expense of approximately $2.6 million in fiscal 2009, primarily for severance costs. Future cash expenditures related to the Cost Reduction Plan are expected to be approximately $3.0 million. The difference between the expense and the future cash expenditures is that the Company had accrued for approximately $0.4 million of the expenditures in Israel where the accruals are required by local laws.

Forward-Looking Statements

In addition to historical statements, this current report on Form 8-K contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include, but are not limited to, statements that relate to global economic conditions and projected future demand for our products. While these forward-looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to volatility in the global economy, equity and credit markets, the semiconductor industry and demand for our products and services, as well as the other factors listed or discussed in Kulicke and Soffa Industries, Inc. 2007 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & Soffa Industries is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

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