LG Innotek, led by CEO Moon Hyuksoo, announced on December 22 the successful development of its Next-Generation Smart IC (Integrated Circuit) Substrate, a breakthrough that significantly enhances performance while cutting production-related carbon emissions by 50 percent.
The newly designed substrate serves as a critical base for mounting IC chips used in smart cards such as credit cards, e-passports, and USIMs. When a user inserts one of these cards into an ATM or passport scanner, the chip communicates data through electronic signals transmitted via the substrate layer.
According to the company, this eco-friendly innovation will reduce annual CO₂ emissions by approximately 8,500 tons, equivalent to planting nearly 1.3 million trees. The achievement underscores LG Innotek’s commitment to sustainability in electronics manufacturing.
Also Read: https://webnewsaddiction.com/rise-modules-by-rapidise-scalable-3-5-12-tops-edge-ai-for-oems/
For the first time globally, LG Innotek has applied a new proprietary material to this product, enabling high signal performance without the need for precious metal plating. Traditional smart IC substrates rely on surface plating with palladium and gold to prevent corrosion and ensure stable conductivity.
However, mining these metals produces substantial greenhouse gas emissions and incurs high material costs. The new substrate eliminates this step entirely, drawing industry attention for its potential to lower environmental impact and improve production efficiency.
With stricter environmental regulations emerging in Europe, a key market for smart card manufacturers, LG Innotek’s innovation positions the company for a stronger competitive advantage.
In addition to its environmental benefits, the new substrate offers three times greater durability than existing solutions. This improvement minimizes data reading errors caused by wear from repeated use, ensuring both enhanced reliability and user convenience.
- Mass production for global customers began in November, tailored to customer needs, accelerating customer acquisition
LG Innotek aims to accelerate its global market penetration with this ‘Next-Generation Smart IC Substrate’. In November, the company began mass production to supply leading global smart card manufacturers.
LG Innotek holds 20 domestic patents related to the ‘Next-Generation Smart IC Substrate’ and is pursuing patent registrations in the United States, Europe, and China. The company plans to secure additional global customers through active overseas promotions, leveraging its exclusive technology.
Cho Jitae (Jeffrey Cho), executive vice president and head of LG Innotek’s Package Solution Business, said: “The ‘Next-Generation Smart IC Substrate’ both satisfies customers’ ESG requirements and offers technological competitiveness. We will continue presenting innovative products that create differentiated customer value, making us a partner that realizes our customers’ visions.”
According to market research firm Mordor Intelligence, the global smart card market currently valued at USD 20.3 billion is projected to reach USD 30.6 billion by 2030, with an annual growth rate of 8.6%.
In particular, the smart card industry is increasingly adopting dual cards that support both insertion into devices and contactless transactions, boosting demand for replacing existing cards. Additionally, rising credit card issuance in emerging markets such as Africa and India is projected to drive continued growth in the smart card market.
Smart card
A smart card is a card with a built-in IC chip that offers data storage, provides encryption, and transmits and receives electronic signals to and from readers for information authentication and payment. It is used across various sectors, including finance, transportation, and communication.
