The international chip scarcity that is been a headache for auto producers has truly been a boon for Indie Semiconductor, CEO Donald McClymont advised CNBC Wednesday.
“Whereas others are struggling, we’ve actually really profited,” he stated in a “Mad Money” interview.
McClymont’s feedback got here after Ford Motor introduced earlier within the day it could reduce on automobile manufacturing at a number of North American vegetation because the trade grapples with a world chip scarcity. Demand for semiconductors has spiked in the course of the Covid-19 pandemic as shoppers purchase extra electronics for his or her houses. Semiconductors are utilized in a spread of client merchandise, together with telephones, computer systems and more and more electrified cars.
Indie Semiconductor, which is based mostly in Aliso Viejo, California, makes next-generation chips and software program for the car trade. It provides chips for purposes together with superior driver-assistance and autonomous programs, related driving, person expertise and automobile electrification.
But whereas firms like have Ford struggled, Indie Semiconductor studies having a $2 billion backlog for orders.
“We developed our supply chain kind of in our own image. We’re wholly focused on the automotive market,” McClymont stated. “We picked suppliers who are also much the same and to that end, they make the right decisions for the auto market.”
The non-public firm is anticipated to show right into a public one inside weeks after its blank-check merger with Thunder Bridge Acquisition II closes. Shares of the SPAC, or particular function acquisition firm, rose 3.37% to $10.42 per share on Wednesday.
The merger, which was introduced in December, values Indie Semiconductor at about $1.four billion. Indie Semiconductor needs to develop its attain in a $16 billion marketplace for auto semiconductors, the corporate stated citing IHS figures.