LG Innotek announced on the 10th that it has developed a “next-generation smart IC substrate” for smart cards that halves carbon emissions from integrated circuit (IC) substrates. The company stated that it began mass production in November for supply to global customers.

A smart card is a card with an embedded IC chip that exchanges electrical signals with a reader to perform payment and authentication functions. It is used in various sectors including finance, transportation, and telecommunications. A smart IC substrate is a core component inside smart cards that store personal information, such as credit cards, electronic passports, and USIMs for telecommunications; it supports the IC chip and exchanges electrical signals with the reader. The new product reduces carbon dioxide emissions by about 50% compared with existing products, resulting in an annual carbon reduction effect of approximately 8,500 tons. This is said to be equivalent to planting 1.3 million trees.

LG Innotek applied a new material, for the first time in the world, that enables high electrical performance while eliminating the palladium and gold plating steps that were central to the existing process. Until now, precious metal plating had been essential to prevent corrosion and stabilize electrical signals, but the mining process emitted large amounts of greenhouse gases and raw material prices were a significant burden. The new plating-free process is expected to greatly mitigate these issues.

Amid tightening environmental regulations, particularly in Europe, LG Innotek’s new substrate is being evaluated as a strategic product that enhances responsiveness to the global market. The company explained that it has secured durability about three times higher than before, so that information recognition rates remain stable even with frequent use.

LG Innotek is accelerating its expansion into overseas markets with the new product at the forefront. The company has secured more than 20 related patents in Korea and is pursuing patent registrations in key regions including the United States, Europe, and China. It is also seeking additional market entry opportunities by simultaneously promoting the technology to global customers and expanding cooperation.

Executive Vice President Cho Ji-tae, Head of the Package Solution Business Unit, said, “This product is the result of efforts to simultaneously meet customers’ ESG requirements and technological competitiveness. LG Innotek will continue to introduce customer-centric innovative technologies.”

According to market research firm Mordor Intelligence, the global smart card market is projected to grow from USD 20.3 billion (KRW 29.8 trillion) in 2025 to USD 30.6 billion (KRW 44.9 trillion) by 2030. The expansion of “dual cards” (supporting both contact and contactless methods) and the increase in credit card issuance in emerging markets are expected to drive market growth.

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