Indie Semiconductor says its prospects for this year are positive, despite the huge pressures facing the chip industry.
Six weeks into the first quarter, the automobile-focused company predicted “slower than anticipated production ramps” for the current three-month period.
Donald McClymont, Indie co-founder and chief executive, told stock analysts on Feb. 20 that “in recent weeks, market uncertainty has actually accelerated.”
“Impending tariffs have exacerbated the challenging market situation, adding to the ongoing inventory and end-customer demand issues,” he said of President Donald Trump’s plans to boost duties on imports.
McClymont said traditional manufacturers could be particularly impacted by cross border tariffs between the U.S. and Mexico or Canada since component parts sometimes cross the border up to half a dozen times.
Indie Semiconductor (Nasdaq: INDI) reported fourth-quarter revenue fell 17% to $58 million on a year over year basis and rose 7.5% on a sequential quarterly basis.
“In Q4, Indie delivered growth despite a challenging market backdrop,’ McClymont said in a statement. “This resilient business performance is a testament to our class-leading, highly differentiated product portfolio, our relentless focus on our key target markets and our unique customer relationships. This technology leadership position will also ensure that we drive growth throughout 2025 and beyond.”
The adjusted non-GAAP operating loss widened to $14.2 million for the three-month period ended Dec. 31 from $2.4 million a year earlier.
Shares fell 13% in the trading session after the results were released. They have declined by about 55% since June when they hit a 52-week high of $7.82. At press time, it traded at $3.01 and a $553 million market cap.
Advanced Driver Assistance
The Aliso Viejo-based chip company, which was founded in 2007 and went public in 2021, focuses on technology for advanced driver assistance systems—often referred to as ADAS.
The many uses include traffic jam pilot, parking assist, obstacle detection, facial detection and radar. Indie Semiconductor’s chips aid infotainment systems, interior lighting, wireless charging and comfort functions and vehicle electrification, among others.
Indie’s long-term goal: clearing the way for the “uncrashable” car. It is a “fabless” company meaning it doesn’t have its own production line but relies on contract manufacturers.
Analysts are estimating its revenue will jump 24% to $269 million in 2025 and then accelerate another 51% to $405.3 million in 2026.
The company had $274.2 million in cash and equivalents as of Dec. 31.
Skyworks Solutions Resignation
Like the national semiconductor industry, Orange County’s companies are facing major shifts.
Irvine-based chipmaker Skyworks Solutions Inc. (Nasdaq: SWKS) on Feb. 5 issued what analysts called a weak forecast for the current quarter and said longtime CEO Liam Griffin was resigning, replaced by industry veteran Philip Brace.
The company projected earnings per share below analyst estimates and predicted a decline in its mobile segment. Skyworks traditionally has received 60% or more of its revenue from its biggest customer, Apple Inc. Skyworks earlier this month revealed that Apple is starting to rely on another competitor for a crucial semiconductor in its iPhone.
