Used primarily in organic synthesis, this compound serves as a key intermediate in the production of various pharmaceuticals and agrochemicals. It is particularly valuable in the development of thiophene-based compounds, which are known for their biological activity. Additionally, it plays a role in the creation of organic electronic materials, such as conductive polymers and semiconductors, due to its thiophene backbone. Its iodine substituent also makes it a useful building block in cross-coupling reactions, enabling the construction of complex molecular structures.