Electronics Chemicals Sales

In a recent blog, I provided data and comments on construction chemicals sales.  Click here to read that blog.   In this blog, I provide data and comments on electronics chemicals sales.

Global electronics chemicals sales in 2014 are estimated to be in the $35 billion to $40 billion range.  These estimates of sales amounts are based on market studies data, which can be found searching the Internet.

Electronics chemicals are chemicals used in the electronics industry during processing steps in the manufacturing of such things as silicon wafers and integrated circuits, printed circuit boards, semi-conductors, optoelectronics, flat panel display products, and electronics components.  Functions that these chemicals provide include:  plating; etching; photo resisting; stripping; developing; coating; polishing; dissolving; cleaning; and anti-reflecting.

An intensive Internet search was done to identify public companies that report electronics chemicals sales separately as segments.  Companies found are identified in Tables 1, 2, and 3.  These tables provide average sales (average of sales over the last 2 to 3 years) for the electronics chemicals segments.  Also provided are reported operating incomes for the electronics chemicals segments and the percentages that the operating income segments are of the electronics chemicals segments sales.  Using the total sales (all sales including electronics chemicals) (shown in the tables), the percentages that the electronics chemicals segments sales are of the total sales are shown in the tables.  These percentages show the extent to which electronics chemicals sales account for totals sales of the companies.

table 1   japanese companies	recent average electronics chemicals segment sales in yen	recent average operating income from electronics chemicals segment sales in yen	segment operating income as a percentage of segment sales	latest total company sales in yen	electronic chemicals segment sales as percentage of total sales
shin etsu	398,870,000,000	73,622,500,000	18%	1,256,000,000,000	32%
sumitomo	355,800,000,000	27,333,333,333	8%	2,250,000,000,000	16%
adera	204,500,000,000	36,000,000,000	18%	214,300,000,000	95%
nagase	143,450,000,000	6,000,000,000	4%	759,700,000,000	19%
jsr	135,650,666,667	17,874,666,667	13%	404,073,000,000	34%
mitsubishi	123,566,666,667	-4,466,666,667	-4%	1,942,985,000,000	6%
ohka kogyo	78,758,000,000	7,999,666,667	10%	88,086,000,000	89%
yokuyama	53,955,000,000	3,617,500,000	7%	302,085,000,000	18%
total	1,494,550,333,334	average	9%
total USD 2014	$    13,574,357,484
table 2  european companies	recent average electronics chemicals segment sales in euros	recent average operating income from electronics chemicals segment sales in euros	segment operating income as a percentage of segment sales	latest total company sales in euros	electronic chemicals segment sales as percentage of total sales
merck kgaa	1,851,300,000	632,400,000	34%	11,500,800,000	16%
air liquide	1,180,500,000	260,500,000	22%	15,358,000,000	8%
total	3,031,800,000	average	28%
total USD 2014	$      3,867,091,837
table 3   united states companies	recent average electronics chemicals segment sales in usd	recent average operating income from electronics chemicals segment sales in usd	segment operating income as a percentage of segment sales	latest total company sales in usd	electronic chemicals segment sales as percentage of total sales
3m	$      5,500,000,000	$   1,018,000,000	19%	32,000,000,000	17%
dupont	$      2,533,333,333	$       232,000,000	9%	34,723,000,000	7%
air products	$      2,336,666,667	$       390,733,333	17%	10,439,000,000	22%
kmg	$          192,966,667	$         13,833,333	7%	353,000,000	55%
total	$    10,562,966,667	average	13%

Interesting, the total electronics chemicals sales of all 14 companies in tables 1, 2, and 3 total approximately $28 billion, which is from 70% to 80% ($28 billion/$40 billion; $28 billion/$35 billion) of the estimated total global electronics chemicals sales.

The 70% to 80% indicates how significant these 14 companies in tables 1, 2, and 3 are for providing the needed chemicals for supporting the electronics industry.

Also, the average 14% for the electronics chemicals operating income as a percentage of electronics chemicals sales for 13 companies (Mitsubishi with a -4% value is not included in the average) seems quite good compared to most other sectors.

Construction Chemical Sales

An extensive search of the Internet was made to find market sales data related to chemicals used in construction.  In information found, construction chemicals are generally defined as chemicals added to construction materials to improve the performance of the materials.  Examples include: concrete and asphalt additives; adhesives and sealants; protective coatings; waterproofing materials; and repair chemicals.

The market sales data found indicate that recent year estimates of global sales values for such chemicals range from the low 20 to high 30 billion US dollar range.  At the same time, the global sales value for construction is estimated to be from 8 to 8.5 trillion US dollars.  So, this data gives an approximate construction chemical sales to construction sales ratio of from about 0.24 to 0.5% (20 billion/8.5 trillion; 40 billion/8 trillion).

US Census data indicates that in 2014, the total construction sales value in the United States was $962 billion (click here to find this amount).   (Census Bureau notes indicate that this $962 billion is the total sales value of construction work done in the US.)

Assuming that 0.25 to 0.5% as the ratio for construction chemicals (as defined above) to total construction sales is correct, this indicates that in 2014 in the US construction chemical sales ranged from about $2.4 billion (0.0025 X $962 billion) to about $4.8 billion (0.005 X $962 billion).

To test this result, I looked at annual reports for chemical companies that report separately (as a segment) construction chemical sales or has only construction chemical sales as their business.   I found such data (for 2014) for the five companies listed in this table:

company	total construction chemical sales ($ billion)	percentage of sales in US	sales value of construction chemicals in US ($ billion)
basf	2.63	0.27	0.71
dow	1.77	0.45	0.80
grace	1.09	0.33	0.36
rpm	2.99	0.62	1.85
sika	5.78	0.134	0.77
total	14.26		4.49

As seen in the table, the total US construction chemical sales of these five companies total $4.49 billion.  Other companies certainly have construction chemical sales, but do not report such sales separately in their company reports.

The $4.49 billion sales found for the five companies agrees fairly well with US sales estimates provided above.  So it seems reasonably to write that less than 1% of total construction sales include construction chemicals.

Chemical and Material Shortage Alert – October 2015

The purpose of this blog is to identify chemical and material shortages reported on the Internet.  The sources of the information reported here are primarily news releases issued on the Internet.  The issue period of the news releases is October 2015.

Section I below lists those chemicals and materials that were on the previous month’s Chemical and Material Shortage Alert list and continue to have news releases indicating they are in short supply. Click here to read the September 2015 Chemical and Material Shortage Alert list.

Section II lists the new chemicals and materials (not on the September alert).  Also provided is some explanation for the shortage and geographical information.  This blog attempts to list only actual shortage situations – those shortages that are being experienced during the period covered by the news releases.   Chemicals and materials identified in news releases as only being in danger of being in short supply status are not listed.

Section I.   Glass:  United States; production not keeping up with demand

Section II.   Shortages Reported in October not found on the Previous Month’s List

None

Reasons for Section II shortages can be broadly categorized as: 

1.  Mining not keeping up with demand: none

2.  Production not keeping up with demand: none

3.  Government regulations: none

4.  Sources no longer available: none

5.  Insufficient imports:  none

6.  Supply not keeping up with demand:  none