From DuPont to Qnity: A Bold Move in Electronics Materials

Estimated reading time: 6 minutes

DuPont has announced the intended spinoff of a public independent electronics company, Qnity (pronounced 'cue-ni-ty'), which will serve as a solutions provider to the semiconductor and electronics industries to enhance competitiveness and innovation in advanced computing, smart technologies, and connectivity.

In this interview, Jon Kemp, Qnity CEO-elect and current president of DuPont’s Electronics business, shares his insights on the strategic separation from DuPont. “Inspired by ‘Q,’ the symbol for electrical charge, and ‘unity,’ the name reflects the collaborative way we work with customers,” Jon says. His extensive experience within DuPont’s Electronics business emphasizes renewed potential for tailored strategies that directly meet the customers' needs in today’s dynamic marketplace. As Qnity works toward its Nov. 1 separation date, Jon leads a team poised to drive fresh growth opportunities and redefine its role in the electronics materials business.

Marcy LaRont: The DuPont electronics materials group is distinct from the rest of the DuPont portfolio of products. What prompted this move by DuPont, and what are the goals for the new company?

Jon Kemp: When we consider how the electronics industry market has evolved, we see that evolution is accelerating. The convergence of big industry mega trends like advanced computing and advanced connectivity is driving the pace of innovation to be increasingly faster. This has created a convergence of digitization and electrification in different industries, whether that's consumer electronics, industrial activities, manufacturing, automotive, or healthcare. Perhaps the biggest catalyst over the past year has been the acceleration of AI and high-performance computing.

As DuPont Electronics and Industrial, we've had decades of experience working with our customers on speed, quality, reliability, and product consistency, allowing us to succeed as part of a large multinational company. We believe we can create tremendous value as a focused, standalone company that brings scale and portfolio breadth to a tailored industry interest and supports existing growth opportunities.

LaRont: As advanced computing, high-performance computing, and AI accelerate, we need to focus on new solutions. Where will you put your focus?

Kemp: What makes our business successful and propels us forward is the close partnership and collaboration with our customers. Within that, I have three priorities. The first priority is to maintain the business continuity and close collaboration with our customers that enables their success. In our uncertain world, this priority has taken on an even greater importance, especially as we watch current geopolitics and trade dynamics play out. We want to make sure our customers see that we are plugged into their needs and available to provide the materials they need to enable their technology roadmap. We help make our customers successful.

My second priority is operating with excellence. A continuous improvement mindset is so important for us. It's what makes us successful across the different functions, whether that's commercial activities with our sales and marketing and product groups, our technical organizations as we work on advanced, next-generation technologies, or within our operations group to ensure that we've got the reliability, quality, and consistency that our customers expect.

The third priority is ensuring we are well prepared when we officially separate from DuPont, currently targeted for Nov. 1. This involves building the right organization, teams, and competencies to ensure a seamless transition and that we hit the ground running. Fortunately, DuPont has done this several times over the past five years, so we have a deep and experienced team that has spent the past six months leveraging the best practices from those lessons learned.

LaRont: What is the feedback from your customers about the upcoming changes?

Kemp: The response has been universally positive. They’re excited about the opportunity to have even more of the leadership team’s mindshare and that they will be the central focus of our business. Over the past 50 years of our electronics business’s legacy, we've had names at the top of the house, going back to the original days with companies like Shipley and Rodel, Rohm and Haas, and Dow Corning. These businesses have created a legacy. While their name cards may have changed, the fundamental strengths around innovation and customer service haven't changed. So, while Qnity is a new company, we have a long history in this industry, even as we spin off into an independent entity.

LaRont: An organizational shift like this can create anxiety for customers. How are you working to create a smooth transition?

Kemp: We’re prioritizing transparent communication with our customers about where we are in the process, bringing them along, step by step. We are in great shape as we move toward Nov. 1.

LaRont: Where will your headquarters be located?

Kemp: Our headquarters will stay here in Wilmington, Delaware. But we've been investing over decades and building on our footprint close to our global customers because the speed of collaboration is so important. We've got major “centers of gravity” in the U.S., Japan, Korea, Taiwan, and China, all close to our OEMs and customers. We continue to invest in those geographic and technology-based centers to ensure the speed of collaboration is there today and going forward as we launch this new company.

LaRont: This is a very exciting and timely move. Jon, what is your background in electronics?

Kemp: I've had a long career with DuPont and, in fact, reached my 20-year milestone. I'm really honored to be selected as the CEO-elect and board member of this future independent electronics company.

I spent the first 10 years of my career in a variety of industrial businesses. For the past 10 years, I've been president of the DuPont electronics reporting segment. I started by leading our flexible circuits business, which I know is familiar to many of you.

Among all the businesses I’ve worked in, electronics has been my favorite. For a brief period between 2017 and 2019, while we were going through the Dow DuPont merger, I served as the leader of our corporate strategy, a group driving the integration of the Dow Electronics and the DuPont Electronics portfolio. I later rejoined the electronics business to continue growing what I had originally started a few years prior.

Along the way, it has been a thrill to be part of that journey and participate with many leaders from across our industry.

LaRont: That sounds like a great career. Is there anything else you’d like to share about Qnity?

Kemp: I’ll leave you with a few interesting facts about the company. We will be one of the largest electronics material companies in the world, with 2024 net sales of $4.3 billion and about 10,000 employees. We'll have nearly 40 manufacturing sites and approximately 20 research labs globally and close to our customers. We're just really excited to be able to tell our story.

Because the electronics materials division has been part of a larger organization, we always felt we were an important part of the DuPont portfolio, but we never had the chance to tell our own story. Now, we do, and we are excited and motivated by that.

LaRont: Jon, it was great meeting you. Good luck as you work toward the transition. We will all stay tuned.

Kemp: Thank you, Marcy.