LG Innotek said on the 10th that it has developed a "next-generation smart integrated circuit (IC) substrate" that boosts performance while cutting carbon emissions to half of previous levels. It is the world's first product to eliminate the surface plating process essential for making smart IC substrates. The company already began mass production last month for products to be supplied to a leading global smart card manufacturer.
A smart IC substrate is an essential component for mounting an IC chip containing personal security information onto smart cards such as credit cards, electronic passports, and USIMs (user identity modules). When a smart card is brought into contact with an automated teller machine (ATM) or a passport reader, information from the IC chip is delivered to the reader through electrical signals.
The "next-generation smart IC substrate" unveiled by LG Innotek is the world's first to apply a new material that enables high performance without a precious metal plating process. Conventional smart IC substrates required a plating process using precious metals such as palladium and gold (Au) on the surface that contacts the reader to prevent corrosion and ensure stable electrical signal transmission. Palladium and gold have been criticized for emitting large amounts of greenhouse gases during mining and for their high material costs.
By applying the new material to the smart IC substrate, LG Innotek reduced carbon emissions by about 50% compared with existing products. Durability, enhanced about threefold over existing products, is also cited as a strength. With environmental regulations tightening in Europe, where LG Innotek's key customers are located, the "next-generation smart IC substrate" is positioned as an alternative. The company said, "We expect to reduce annual carbon dioxide emissions by 8,500 tons, equivalent to planting about 1.3 million trees."
LG Innotek is currently mass-producing products to supply to global smart card manufacturers. At the same time, it has secured about 20 domestic patents related to the "next-generation smart IC substrate." It is pushing to register patents in the United States, Europe, and China.
According to market research firm Mordor Intelligence, the global smart card market is expected to grow from $20.3 billion (about 29.8349 trillion won) in 2025 to $30.6 billion (about 44.9728 trillion won) in 2030. The compound annual growth rate is projected at 8.6%. The adoption of "dual cards," which support both the method of inserting a card into a device and the method of operating simply by tapping the card, is expanding, driving replacement demand for existing cards. As credit card issuance increases in emerging markets such as Africa and India, the smart card market size is projected to continue growing.
Cho Ji-tae, executive vice president and head of the Package Solution Business Unit at LG Innotek, said, "The 'next-generation smart IC substrate' is a product that can meet both customers' environmental, social and governance (ESG) requirements and technological competitiveness," adding, "We will continue to introduce innovative products that create differentiated customer value and grow into a partner that realizes customers' visions together."