This chemical is primarily utilized in organic synthesis, particularly as a building block for the preparation of more complex molecules. It is often employed in cross-coupling reactions, such as Suzuki or Sonogashira couplings, due to the presence of the iodine atom, which facilitates the formation of carbon-carbon bonds. The tert-butyl carbamate group serves as a protective group for amines, allowing selective reactions to occur at other sites of the molecule. This compound is valuable in the development of pharmaceuticals, agrochemicals, and materials science, where thiophene derivatives are known for their biological activity and electronic properties. Its stability and reactivity make it a useful intermediate in the synthesis of heterocyclic compounds.