LG Innotek Develops World's First 'Next-Generation Smart IC Substrate'

50% Reduction in Carbon Emissions, Triple the Durability
Equivalent to Planting 1.3 Million Trees Annually
Stable Data Recognition Even with Prolonged Use
Mass Production for Global Customers Began in November
Accelerating Efforts to S

On December 10, LG Innotek announced that it had successfully developed a 'next-generation smart integrated circuit (IC) substrate' that enhances performance while reducing carbon emissions by half compared to previous products.

An LG Innotek employee is showcasing the 'next-generation smart IC substrate' that enhances performance while reducing carbon emissions by half. LG Innotek

The smart IC substrate is an essential component used when mounting an IC chip containing personal security information onto smart cards such as credit cards, electronic passports, and SIM cards. When a user connects a smart card to an ATM or passport reader, the IC chip transmits its information to the reader via electrical signals. A smart card is a card equipped with an IC chip that has data storage and encryption capabilities. By exchanging electrical signals with a reader, it performs functions such as information authentication and payment. Smart cards are utilized in various sectors, including finance, transportation, and telecommunications.

The next-generation smart IC substrate introduced by LG Innotek reduces carbon emissions by approximately 50% compared to existing products. This is equivalent to reducing annual carbon dioxide emissions by 8,500 tons or planting about 1.3 million trees.

Furthermore, LG Innotek has applied a new material to this product for the first time in the world, enabling high performance without the need for precious metal plating. Conventional smart IC substrates require a plating process using precious metals such as palladium and gold on the surface. This is to prevent corrosion of the substrate surface that comes into contact with the reader and to ensure stable electrical signal transmission. However, palladium and gold generate significant greenhouse gas emissions during mining, and their high material costs have made the development of alternative materials or processes a common challenge in the industry. LG Innotek's next-generation smart IC substrate, which eliminates the need for surface plating, is seen as a solution to this problem and is attracting significant attention within the industry.

LG Innotek expects that this new product will give the company a competitive edge in securing a leading position in the global market. In particular, it anticipates that the product will help minimize the impact of strengthened environmental regulations in Europe, where many key customers are located. LG Innotek believes the product is highly competitive, having improved durability by about three times compared to existing products. This minimizes information recognition errors caused by frequent external contact and prolonged use of smart cards, thus enhancing both performance and user convenience.

Last month, LG Innotek began mass production of the product for supply to a leading global smart card manufacturer. The company has also secured around 20 domestic patents related to IC substrates and is seeking patent registrations in the United States, Europe, and China. LG Innotek has also established a plan to actively promote the product overseas to secure additional global customers.

Jo Jitae, Executive Vice President and Head of the Package Solution Business Division, stated, "The next-generation smart IC substrate is a product that meets both our clients' ESG requirements and technological competitiveness. We will continue to introduce innovative products that create differentiated customer value and strive to become a partner that realizes our customers' visions together."

This content was produced with the assistance of AI translation services.