Home Business Indie Semiconductor is profiting from auto chip shortage, CEO says

Indie Semiconductor is profiting from auto chip shortage, CEO says

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.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer TwitterInstagram

Questions, comments, suggestions for the “Mad Money” website? [email protected]

Source link


Please enter your comment!
Please enter your name here

Most Popular

Half of U.S. adults have received at least one Covid vaccine shot

Dr. Jerry Abraham, director of Kedren Vaccines, right, gives a COVID-19 vaccination to Jose Guzman-Wug, 16, while his mom, Adriana Wug, watches at Kedren...

European Super League plans set to be announced

In November 2019, a fan "spent" 386,000 hotel points for VIP access to a Manchester United match, which included flying with the team on...

Climate change factor behind increased migration

Hurricanes Eta and Iota struck Central America last November, bringing torrential rain, flash floods, landslides and crop damage across Honduras, El Salvador, Guatemala and...

Recent Comments