Providing advanced electronics solutions

The advanced electronics market is expected to grow at an annual rate of around 5% by 2030[1]. This impressive expansion is driven not only by the rise of emerging applications specific to this sector, but also by external megatrends that are boosting the use of electronic technologies.

As Fabrice Domingues Dos Santos , General Manager Electroactive Polymers at Arkema sums up: “There are four main drivers behind the continuous growth of electronics: ongoing digitalization, the emergence of innovative new technologies such as artificial intelligence, 5/6G and IOE (Internet of Everything...), energy transition and energy efficiency, and finally an external factor related to the increase in the average global purchasing power.” The digitalization phenomenon remains indeed in full swing and has even accelerated during the Covid pandemic. Digital technologies are being used at an unprecedented scale, integrated into a growing number of sectors and present in every aspect of our daily lives.

The sector’s remarkable dynamism can be attributed to its unparalleled innovative capacity, showcased by the constant emergence of next-generation products. But electronics are also fundamental to the energy transition and improving energy efficiency by enabling the integration of renewable energy, optimizing energy use, and supporting the shift from fossil fuels to cleaner energy sources. Furthermore, the global rise in average purchasing power and access to the internet has made electronic devices more affordable and more accessible to a wider audience. In short, the advanced electronics market is witnessing remarkable growth, standing out for its cutting-edge applications that are set to redefine both industrial and societal futures. This momentum demands a relentless pace from market stakeholders, requiring them to continually push the boundaries of performance. In this context, Arkema positions itself as a trusted partner, supporting industry players while shaping the future of electronics.

[1] Arkema Annual Report 2023 - p.25

Challenges that reflect the market's standards

With exponential growth and continuous progresses come major challenges to overcome:

• Performance and miniaturisation are more than ever the foremost priorities for the market. Electronic devices are becoming increasingly slim and compact, pushing value chain players to rethink their designs and develop more efficient components. This challenge is particularly acute for semiconductors. Taking on central functions in devices ranging from computers to household appliances and gaming consoles, these components require architectural redesigns to keep pace with the trend toward miniaturisation.

• Sustainability is also a key challenge for the electronics industry. Balancing the demand for innovative products with the need to minimize environmental impact through efficient resource use, e-waste management, and energy consumption is a central issue.

• The pursuit of reliability is another significant challenge. It is crucial for industry players to rely on materials and infrastructure that match their ambitions across the entire value chain. Post-Covid, the emphasis on reliability has even grown to encompass the supply chain as well. Thus, industry partners must not only provide proven, high-quality solutions but also ensure they are delivered in a reliable and robust manner.

• Aiming to provide solutions to the market, Arkema must also adapt its research and development timelines to avoid being outpaced. The rapid succession of electronic innovation cycles, which drive the creation of ever more advanced products, requires stakeholders to adapt their own processes swiftly to remain competitive.

With its expertise in high-performance materials, a comprehensive portfolio of solutions, and a 360° approach to supporting the entire advanced electronics value chain, Arkema stands out as a key partner in the industry.

Arkema: a strategic ally in powering the digital revolution

Advanced electronics is a key market for Arkema, which forecasts a 10% increase in revenue from this sector between 2024 and 2028[2]. To keep pace with the industry's timelines and better address its challenges, Arkema relies on a range of strategic advantages.

One key factor is the expansion of its material portfolio, which strengthens its expertise and improves its ability to anticipate the sector's evolving needs. This approach fuels a long-term innovation process, enabling the creation of cutting-edge, durable products with leading-edge properties.

[2] Arkema Annual Report 2023 - p.25

The transversal nature of Arkema's offering is another main asset in addressing the challenges of the electronics sector. “The Group's consistency is a key strength of its offering, underlines Olivier Poyet , Vice President Polyimides - High Performance Polymers at Arkema. “The team spirit that defines the collaboration between our three segments is a true advantage, reinforcing our position as a trusted partner in the market”. With its three complementary business segments—advanced materials, adhesives, and coating solutions—Arkema is indeed uniquely positioned to provide solutions across the entire value chain, from component production to final product assembly. Arkema's materials even help optimize certain manufacturing processes, enhancing their precision and safety.

To better address market challenges, it is also essential to collaborate closely with value chain stakeholders. “Anticipation is key,” explains Polivio Goncalves , Head of Engineering Adhesives at Bostik . “By staying connected to all stakeholders across the value chain as early as possible, we can sense emerging trends, understand the direction we are heading, and adapt to future developments in the sector.” These partnerships ensure alignment with industry requirements, provide insights into emerging trends, and make it possible to prepare for them more effectively. This approach also broadens Arkema’s expertise and enhances its portfolio of solutions. A prime example of this strategy is Arkema’s acquisition of a 54% stake in South Korean company PI Advanced Materials (PIAM). Through this move, Arkema seizes a unique opportunity to remain at the forefront of advanced materials innovation while strengthening its offering for the electronics market.

Expertise, anticipation, and coherence are the cornerstones of Arkema’s advanced electronics offer. These values position the Group as a reliable partner and a leading solution provider for the industry.

Innovations redefining the boundaries of electronics

By working on the electronic applications of the future, Arkema goes beyond simply meeting market demands—it paves the way for the next wave of high-tech innovations. As an example, the Group's promising progress on electroactive polymers is a strong testament to this forward-thinking approach.

These materials deform when subjected to an electric field and, conversely, generate electricity in response to mechanical stimuli. Their highly innovative nature lies in their ability to harness the sense of touch and their diverse properties, including sensitivity to deformation, vibrations, and the creation of tactile sensations. These exceptional materials unlock a wealth of new applications across sectors such as telecommunications, medicine, and transportation. Examples include advanced tactile interfaces capable of transmitting highly realistic sensations to users, smart floors that detect movement, and connected textiles that monitor biomedical data. Electroactive polymers are also at the forefront of advanced research in the emerging field of neuromorphic electronics. This field mimics the brain's neural structure and function for advanced computing, and it holds promise for breakthroughs in artificial intelligence, robotics, and medical devices. These innovations could potentially revolutionize the way we interact with technology. Arkema plays a leading role in the development of this market, which was already valued at over €20 billion in 2020[3]. As a materials provider, the Group is at the very foundation of the innovation creation chain, positioned as a market driver, contributing to innovations that are closer to reality than they might seem.

[3] Innovative with #1 - p.5

Want to find out more about electroactive polymers and their most surprising applications? Watch this video!

The electronics market is exceptionally diverse and expansive, with its dynamic growth presenting numerous new challenges for industry players. By positioning itself as a trusted partner in the sector, Arkema provides a comprehensive 360° range of solutions to help tackle these challenges and shape the future of electronics. From frameless screens to foldable phones, the possibilities for innovation are vast and increasingly within reach!

You want to discover more about Arkema’s expertise? Dive even deeper inside materials by reading the previous issue of our newsletter on electric mobility and batteries—a field where, as you might have guessed, advanced electronics play a crucial role too!

➡️ Accelerating the shift to electric mobility.

Would you like to find out more about Arkema’s solutions for the electronics market? Feel free to visit our website, or follow our news directly on our dedicated LinkedIn page: Arkema Electronics . Are you particularly interested in Arkema's R&D activity and electroactive polymers? Visit our dedicated page.

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