Smart IC substrate without precious metal plating
LG Innotek has announced the development of what it calls the world’s first “next-generation smart IC substrate,” a core component used in smart cards such as credit cards, electronic passports and USIMs. The company says the new substrate improves durability while cutting carbon emissions generated during production by half.
For eeNews Europe readers, the announcement is notable because it highlights a materials and packaging innovation that directly affects signal reliability, long-term wear, and ESG compliance. These are key considerations for engineers working on secure ICs, card interfaces, and high-volume electronics manufacturing.
Rethinking the IC-reader interface
According to the release, smart IC substrates provide the physical and electrical interface between an IC chip and external readers. When a smart card is inserted into an ATM or scanned by a passport reader, electronic signals are transferred through contact points formed on the substrate surface. Ensuring low contact resistance, corrosion resistance and mechanical durability has traditionally required surface plating with precious metals such as gold and palladium, the company indicates.
LG Innotek says its next-generation smart IC substrate eliminates the need for this plating step entirely. The company has applied a new material for the first time that maintains effective electronic signal transmission without precious metal surface treatment. By removing the plating process, the substrate avoids the use of materials associated with high greenhouse gas emissions during mining and refining, while also simplifying manufacturing.
As a result, LG Innotek claims the new substrate reduces production-related carbon emissions by 50%. On an annual basis, this corresponds to a reduction of approximately 8,500 tons of carbon dioxide emissions, which the company equates to planting about 1.3 million trees.
Higher durability and market impact
Beyond sustainability, the company highlights performance improvements. According to LG Innotek, the durability of the new substrate is three times greater than that of existing products. This increased robustness reduces information reading errors caused by repeated external contact and long-term card usage, particularly important for smart cards that support both contact-based and contactless transactions.
The timing also aligns with broader market trends. According to market research firm Mordor Intelligence, the global smart card market is valued at USD 20.3 billion and is expected to grow to USD 30.6 billion by 2030, at a compound annual growth rate of 8.6%. Growth is being driven by increased adoption of dual-interface cards and rising credit card issuance in emerging markets such as Africa and India.
LG Innotek says it began mass production of the new substrate in November and is supplying leading global smart card manufacturers. The company holds 20 domestic patents related to the technology and is pursuing patent registrations in the United States, Europe and China.
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