The global chip shortage that has been a headache for automakers has actually been a boon for Indie Semiconductor, CEO Donald McClymont told UKTN on Wednesday.
“While others are struggling, we have really benefited from it,” he said in an interview with “Mad Money”.
McClymont’s comments came after Ford Motor announced earlier today that it would cut car production at several North American factories as the industry grapples with a global chip shortage. Demand for semiconductors has increased 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, Calif., Manufactures next-generation chips and software for the automotive industry. It provides chips for applications such as advanced driver assistance and autonomous systems, connected driving, user experience and vehicle electrification.
But while companies like Ford have struggled, Indie Semiconductor reports having a backlog of orders of $ 2 billion.
“We have developed our supply chain in our image. We are completely focused on the automotive market,” said McClymont. “We have chosen suppliers who are also pretty much the same and to that end they are making the right decisions for the automotive market.
The private company is expected to become a public company in the weeks following the closing of its blank check merger with Thunder Bridge Acquisition II. Shares of SPAC, or the special purpose acquisition company, rose 3.37% to $ 10.42 per share on Wednesday.
The merger, announced in December, values Indie Semiconductor at around $ 1.4 billion. Indie Semiconductor wants to expand its reach into a $ 16 billion market for automotive semiconductors, the company said, citing IHS figures.