Two semigroups are called Morita equivalent if the categories of firm right acts over them are equivalent. We prove that every semigroup is Morita equivalent to its subsemigroup consisting of all products of n factors. Using this we show that a finite semigroup is Morita equivalent to its largest factorisable subsemigroup. It follows that two finite semigroups are Morita equivalent if and only if their Cauchy completions are equivalent categories. Since these categories are finite, the problem of Morita equivalence of finite semigroups is decidable.