The global chip shortage that’s been a headache for auto manufacturers has actually been a boon for Indie Semiconductor, CEO Donald McClymont told CNBC Wednesday.
“Whereas others are struggling, we’ve actually really profited,” he said in a “Mad Money” interview.
McClymont’s comments came after Ford Motor announced earlier in the day it would cut back on car production at multiple North American plants as the industry grapples with a global chip shortage. Demand for semiconductors has spiked during the Covid-19 pandemic as consumers buy more electronics for their homes. Semiconductors are used in a range of consumer products, including phones, computers and increasingly electrified automobiles.
Indie Semiconductor, which is based in Aliso Viejo, California, makes next-generation chips and software for the automobile industry. It supplies chips for applications including advanced driver-assistance and autonomous systems, connected driving, user experience and vehicle electrification.
But while companies like have Ford struggled, Indie Semiconductor reports 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 said. “We picked suppliers who are also much the same and to that end, they make the right decisions for the auto market.”
The private company is expected to turn into a public one within weeks after its blank-check merger with Thunder Bridge Acquisition II closes. Shares of the SPAC, or special purpose acquisition company, rose 3.37% to $10.42 per share on Wednesday.
The merger, which was announced in December, values Indie Semiconductor at about $1.4 billion. Indie Semiconductor wants to grow its reach in a $16 billion market for auto semiconductors, the company said citing IHS figures.