- Reduces production-related carbon dioxide emissions by 50%, an impact equal to planting 1.3 million trees each year.
- Increases durability by as much as threefold, ensuring reliable information recognition over extended periods of use.
- Customized mass production for international clients commenced in November, speeding up the process of gaining new customers.
SEOUL, South Korea, Dec. 22, 2025 — LG Innotek (CEO Moon Hyuksoo) disclosed on December 22 that it has developed a ‘Next-Generation Smart IC (integrated circuit) Substrate’. This new product delivers improved performance while halving the carbon emissions associated with its manufacturing.
The smart IC substrate is a crucial part used for attaching IC chips, which hold data, onto smart cards like credit cards, e-passports, and USIMs. When a user inserts a smart card into an ATM or places it on a passport reader, electronic signals convey the information from the IC chip to the device.
- Production carbon emissions halved, durability tripled, and secure information recognition maintained
This ‘Next-Generation Smart IC Substrate’ is an environmentally friendly product that cuts manufacturing carbon emissions by 50%. The company stated that the product will reduce annual carbon dioxide output by 8,500 tons—a saving comparable to planting approximately 1.3 million trees.
LG Innotek incorporated a novel material into this product, a world-first achievement that enables high performance without the need for precious metal plating.
Conventional smart IC substrates need their surfaces plated with precious metals like palladium and gold (Au). This plating protects against corrosion at the contact points with readers and guarantees efficient transmission of electronic signals.
Nevertheless, mining palladium and gold produces substantial greenhouse gas emissions, and these metals command high prices. Consequently, the industry has been searching for alternative materials or processes. By doing away with surface plating, LG Innotek’s ‘Next-Generation Smart IC Substrate’ is drawing significant interest from the industry.
As environmental rules become stricter in Europe, where many key customers are based, LG Innotek is well-positioned to secure a competitive advantage in the worldwide market with this substrate.
Additionally, the durability of this product is three times higher than that of current alternatives. This greatly reduces errors in reading information that result from wear due to repeated contact and prolonged use of smart cards, offering both superior performance and greater convenience for users.
- Mass production for international customers started in November, customized to their requirements, to fast-track customer acquisition
LG Innotek seeks to expedite its expansion into the global market with this ‘Next-Generation Smart IC Substrate’. The company initiated mass production in November to provide the product to major smart card makers around the world.
LG Innotek possesses 20 domestic patents for the ‘Next-Generation Smart IC Substrate’ and is in the process of filing for patents in the United States, Europe, and China. By actively promoting its proprietary technology overseas, the company intends to attract more global clients.
Cho Jitae(Jeffrey Cho), executive vice president and head of LG Innotek’s Package Solution Business, stated: “The ‘Next-Generation Smart IC Substrate’ meets customer ESG demands while also providing technological edge. We will keep introducing innovative products that deliver unique value to customers, positioning ourselves as a partner that helps achieve their goals.”
Per market research firm Mordor Intelligence, the global smart card market, presently worth USD 20.3 billion, is expected to grow to USD 30.6 billion by 2030, expanding at a compound annual growth rate of 8.6%.
Specifically, the industry is seeing increased use of dual-interface cards that work both when inserted into devices and for contactless payments, fueling demand to replace older cards. Furthermore, growing credit card issuance in developing regions like Africa and India is anticipated to sustain the smart card market’s expansion.
[Glossary]
Smart card
A smart card is a card embedded with an IC chip capable of storing data, encrypting information, and sending and receiving electronic signals to and from readers for authentication and payment purposes. Its applications span multiple industries such as finance, transport, and telecommunications.
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