LG Innotek Unveils Eco-Friendly Smart IC Substrate Cutting Emissions

LG Innotek has announced the successful development of a groundbreaking product—the world’s first **Next-Generation Smart IC Substrate**. This innovative substrate significantly enhances performance while reducing carbon emissions from its production by 50%. The announcement was made on **December 22, 2025**, positioning LG Innotek at the forefront of sustainable technology in the integrated circuit sector.

The smart IC substrate is a crucial component for mounting integrated circuit chips that are used in various smart cards, including credit cards, electronic passports, and USIMs. These chips facilitate the transmission of information when users interact with devices such as ATMs and passport readers. By introducing this new product, LG Innotek aims to cut annual carbon dioxide emissions by **8,500 tons**, which the company equated to planting approximately **1.3 million trees**.

Innovative Design and Environmental Impact

In a significant shift from traditional manufacturing processes, LG Innotek has utilized a new material that eliminates the need for precious metal plating, typically involving palladium and gold. These metals have been standard for ensuring corrosion resistance and effective electronic signal transmission, but their extraction contributes to substantial greenhouse gas emissions and high market prices. By removing surface plating, the **Next-Generation Smart IC Substrate** captures attention for its eco-friendly design and potential to reshape industry standards.

With increasing environmental regulations, particularly in Europe where many key customers are located, LG Innotek is strategically positioned to gain a competitive advantage in the global market. The new substrate also boasts a durability that is **three times greater** than existing products. This feature minimizes information reading errors, enhancing user convenience and performance during prolonged use.

Market Readiness and Future Prospects

LG Innotek has commenced mass production of the **Next-Generation Smart IC Substrate** as of November 2025, aiming to supply leading global smart card manufacturers. The company holds **20 domestic patents** related to this innovative substrate and is actively pursuing patent registrations in markets such as the United States, Europe, and China.

The potential for growth in the smart card market is evident, with research firm **Mordor Intelligence** estimating its current value at **USD 20.3 billion**, projecting an increase to **USD 30.6 billion** by **2030**. The annual growth rate is anticipated to be **8.6%**. This growth is driven in part by the rising adoption of dual cards that support both insertion and contactless transactions, alongside the expanding issuance of credit cards in emerging markets like Africa and India.

Jeffrey Cho, executive vice president and head of LG Innotek’s Package Solution Business, emphasized the strategic importance of this product, stating, “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.”

As LG Innotek moves forward, the company is focused on securing additional global customers through active promotions, leveraging its exclusive technology to meet the evolving demands of the smart card market.