LG Innotek has announced the development of a next generation smart IC substrate designed to improve durability while reducing environmental impact during production. The product is used to mount integrated circuit chips found in smart cards such as credit cards electronic passports and USIM cards which transfer information when placed on readers.
According to the company the new substrate reduces carbon dioxide emissions during production by around half compared to existing processes. This reduction is mainly achieved by removing the need for precious metal surface plating. Conventional smart IC substrates rely on metals such as gold and palladium to prevent corrosion and support signal transmission. Mining and processing these materials creates high emissions and adds cost. LG Innotek applied a new material that enables stable performance without surface plating.
The company also states that the durability of the new substrate is up to three times higher than existing products. This helps reduce data reading errors caused by repeated contact and long term use which is important for smart cards used frequently in daily transactions.
Mass production began in November to supply global smart card manufacturers. LG Innotek holds multiple domestic patents related to this technology and is pursuing patent protection in overseas markets including the United States Europe and China. The company expects the product to support customer ESG requirements while meeting technical performance needs.
Industry demand for smart cards continues to grow driven by contactless payments dual interface cards and increasing card issuance in emerging markets. Market estimates from Mordor Intelligence point to steady expansion of the global smart card sector over the coming years.
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