The demand for electronics items is surging day to days. From household, to corporates offices to hotels to any place. The demand for electronics items is unending. The increasing urbanization, rising disposable incomes, and the rapid adoption of new technologies like AI, 5G, electric vehicles (EVs), and automation are some of the driver of this rapid demand. This widespread application across consumer, industrial, medical, and automotive sectors creates a vast and expanding electronic market. Furthermore, the sector is gaining much traction for investment. The Electronics Manufacturing Services (EMS) sector is considered a good investment due to robust growth drivers, global supply chain, and the increasing integration of electronics across various industries. However the scope of investment is not only limited to electronic items. This particular sector opens investment gateway to another sector as they compliment each other.
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Most people think only of electronic brands when they hear EMS. But there is a hidden growth story that includes the expansion of chemical sector which is well complimented by the rise in electronics demand. There are many specific chemical items that require in processing of the electronic items. And as electronic market frows, the demand for these chemical also rises. Here are certain items, which compliment well in electronics demand.
Bopp films : These films are widely used in the manufacture of film capacitors, where they function as the crucial insulating material that stores electrical energy. Shares or companies like SRF Ltd is good option for investment.
Epoxy resins : This items are used to completely encase electronic components, integrated circuits (ICs), and printed circuit boards (PCBs). This forms a robust, protective barrier against moisture, dust, chemicals.
Solvents and Cleaning Chemicals : It is used to remove contaminants such as flux residues, oils, grease, and fingerprints from components and printed circuit boards (PCBs) to ensure product quality, reliability, and proper function.
Silicones and Polymers - These are valued for their protective and functional properties, especially in demanding environments. They are predominantly used in displays and connectors.
Chemicals are essential raw materials for a wide range of fast growing industries. As EMS expands the demand for these niche specialty chemicals will shoot up, so next time you study electronics manufacturing , don't limit yourself just to focus on the gadgets look, but also consider at the chemical side for the boom.
In good faith - Peace!!
