LG Innotek Launches World’s First ‘Next-Generation Smart IC Substrate’

• Cuts carbon dioxide emissions from its production by 50%—equivalent to planting 1.3 million trees annually.
• Boosts durability by up to three times for secure information recognition even with long-term use.
• Mass production tailored to global customers starts in November, accelerating customer acquisition.

SEOUL, South Korea, Dec. 22, 2025 /PRNewswire/ — LG Innotek (CEO Moon Hyuksoo) announced on December 22 that the company has successfully developed a ‘Next-Generation Smart IC (integrated circuit) Substrate’ featuring enhanced performance and reducing carbon emissions generated in its production by half.

The smart IC substrate is an essential component for mounting IC chips that store information on smart cards, such as those in credit cards, electronic passports, and USIMs. When users place a smart card in an ATM or on a passport reader, the IC chip’s information is transmitted to the device via electronic signals.

• Carbon emissions from its production cut by 50%, durability boosted by three times, and secure information recognition enabled
  

This ‘Next-Generation Smart IC Substrate’ is an eco-friendly product that reduces the carbon emissions generated in its production by half. The product will cut annual carbon dioxide emissions by 8,500 tons—equivalent to planting about 1.3 million trees, the company explained.

LG Innotek applied a new material to this product for the first time in the world, achieving high performance without precious metal plating processes.

Existing smart IC substrates require plating with precious metals such as palladium and gold (Au) on their surfaces. This process prevents corrosion where the substrate makes contact with readers and ensures effective electronic signal transmission.

However, the mining of palladium and gold generates massive amounts of greenhouse gases, and the prices of these metals remain high. Thus, the industry has sought new materials or processes to replace them. By eliminating surface plating, LG Innotek’s ‘Next-Generation Smart IC Substrate’ is thus attracting industry attention.

With environmental regulations tightening in Europe, home to major customers, LG Innotek is poised to gain a competitive edge in the global market with this ‘Next-Generation Smart IC Substrate.’

Furthermore, this product’s durability is three times greater than existing products. This minimizes information reading errors caused by wear from frequent external contact and long-term smart card use, delivering both higher performance and enhanced 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.

[Glossary]

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.

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SOURCE LG Innotek