Open market distributor buys test house

Business news |
By Nick Flaherty

US ‘open market’ distributor Fusion Worldwide has bought a large-scale electronic component test house in Singapore.

The move is prompted by the impact of the pandemic on supply chains that  experiencing historic constraints leading to lengthy turnaround times. Fusion, Boston, Massachusetts has operations in Paris, Amsterdam, Munich and Undine, Italy. It buys components from manufacturers and on the open market, rather than using the franchise model. This has been vulnerable to counterfeiting and quality issues as process rose in the pandemic as a result of higher demand.

Buying Prosemi Mfg in Singapore will provide testing of components. Over the last 22 years, Prosemi has become a trusted source for testing electronic components among some of the world’s largest CEMs and OEMs.

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“The collaboration of Fusion Worldwide and Prosemi marks an important moment for our company. Quality is always at the forefront of our business and this acquisition demonstrates our continued dedication to excellence. We look forward to providing our customers with the shortest turnaround times possible as we navigate the consistently variable market,” said Tobey Gonnerman, president of Fusion Worldwide.

The company has a sourcing team constantly monitoring the electronic component and finished product markets through its proprietary software called Scout, coupled with market intelligence software for more accurate demand prediction.

“It’s not often that it’s a sellers’ market or a manufacturer’s market,” he said. “We’ve seen manufacturers and suppliers emboldened by this shortage because of the demand, and they’re not always in a power position in the negotiation.”

“The lessons learned during shortages need to be applied during normal times,” he said. “When the dust settles on the shortage, they [suppliers] should re-calculate their supply chain strategy to focus more on supply assurance through any market.”

“A big part of our business is that one manufacturer’s problem might be another manufacturer’s opportunity. So, matching up and finding the correct home where the parts fit in and sharing information from one large company to another company is a huge value add,” he said

Testing is key for this.

“Prosemi remains committed to providing the best manufacturing and testing services that exceed expectations,” said K.H. Siau, founder and CEO of Prosemi. “Our new partnership with Fusion Worldwide will help us continue to deliver top quality resources in the semiconductor, electronics and PCBA assembly industries.”;

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