Resin consumption in electronic components is comprised of a select group of engineering thermoplastics (ETPs) led in volume by nylon and thermoplastic polyesters. Based on value, however, higher performance resins such as polyphenylene sulfide (PPS), polyimides, and liquid crystal polymers (LCPs) have become a more significant factor in the market. ETPs dominate the molded electronic component segment of which connectors are the most important. On the thermoset side, epoxies are, far and away, the most dominant resin in two major applications -- printed circuit board (PCB) laminates and as encapsulants.
According to a soon-to-be-released study from Business Communications Company, Inc, RP-176: Evolving Plastics Market in Electronic Components, the market for thermoplastic and thermoset volumes is estimated at about 415 million pounds in 2001. Expected to grow at an AAGR (average annual growth rate) of 3.9%, this total should reach slightly over 500 million pounds by 2006. Three specific applications, namely PCB laminates, encapsulation, and molding of connectors, account for over 80% of the total volume of the market.
In regard to end-use applications, plastic usage in electronic components comprises computers and peripherals, consumer electronics, and other industrial outlets. Although portable computers and peripheral products led by wireless electronic devices are growing at several times the rate of the other markets, actual plastic volumes of electronic components are quite small, simply because portable devices, by definition, are themselves much smaller than stationary devices in computer, consumer, and industrial markets.
Growth rates of resin usage in electronic components have always trailed overall sales of electronic components in general, because of miniaturization of parts, thinwalling, and inventory buildup.
The electronics industry is currently going through the most difficult time in its history. This decline, which began in the last quarter of 2000, is expected to last through most of 2002, and "full recovery" is not anticipated until 2003. Even prior to this current decline, electronic devices were becoming smaller and used smaller electronic components, which resulted in lower resin volumes, counteracting the growth of the industry.
In terms of technology-driven factors, miniaturization is still an important factor, although it is beginning to reach its saturation point: Thinwalling of molded parts and higher soldering temperatures due to surface mount technology (SMT) are the key parameters, especially if the industry moves to a lead-free solder scenario. Molded 3-D PCBs could also alter resin selection. A potentially important issue is the search, mostly for environmental reasons, for other PCB laminate resins that would not require bromine-based flame retardants (which are used by epoxies).
