LG Innotek announced on the 10th that it has successfully developed a next-generation smart IC (Integrated Circuit) substrate that enhances performance while cutting carbon emissions by half. The company plans to accelerate its penetration into the global smart card market with this new product.
Smart IC substrates are essential components used in security chip-based smart cards such as credit cards, electronic passports, and USIM cards. They ensure stable transmission of chip data when the card interfaces with devices such as ATMs or passport readers.
LG Innotek’s newly introduced substrate reduces carbon emissions by approximately 50% compared to conventional products. The company said this translates to an annual reduction of about 8,500 tons of greenhouse gases, equivalent to planting 1.3 million trees.
The key innovation is the world’s first adoption of a “non-plating advanced material” technology. Traditional substrates coat palladium (Pd) and gold (Au) to prevent corrosion and ensure signal reliability, but the mining of high-cost precious metals creates environmental and cost challenges. LG Innotek’s technology eliminates the plating process itself, improving environmental sustainability and cost competitiveness simultaneously.
Durability has also been improved by roughly three times, significantly reducing failures caused by frequent card-reader contact or long-term use.
Mass Production for Global Customers; 20 Patents Secured
LG Innotek began mass production in November to supply major global smart card manufacturers. The company has obtained around 20 domestic patents for this technology and is pursuing patent registrations in major markets including the United States, Europe, and China.
Ji-Tae Cho, Head of the Package Solution Business Unit, said the product fulfills both ESG requirements and performance expectations from customers. He added that the company plans to continue launching innovative solutions to strengthen global partnerships.
According to market research firm Mordor Intelligence, the global smart card market is expected to grow from USD 20.3 billion in 2025 to USD 30.6 billion in 2030, representing a CAGR of 8.6%. Rising demand for dual-interface cards, which operate via both contact and short-range communication, is driving replacement needs. In addition, expansion of credit card issuance in emerging markets such as Africa and India is contributing to market growth.
Industry observers are watching whether LG Innotek’s new product will provide a competitive edge in the face of increasingly stringent environmental regulations in Europe.
