LG Innotek (CEO Ung-Beom Lee) is making inroads into the smart card parts market in earnest.
LG Innotek said it developed tape-type Chip on Board (COB) for smart cards that are used for credit cards and public transportation passes, and will start mass production of the board in mid-December.
The COB for smart cards that has been developed by LG Innotek is installed with semiconductors used in smart cards, and assists transfer of information and near area wireless communication.
A smart card refers to an electronic card that offers the function to process large volume data, including various types of cards for financial transactions, public transpiration cards, electronic passports and Universal Subscriber Identity Module (USIM) for smartphones.
The tape-type COB for smart cards that has been developed this time is an integration of LG Innotek’s fundamental technologies, and is characterized by a “Reel to Reel” production method, which is advantageous for mass production in small variety. The product has secured competiveness through specialized raw materials production technology when compared with rivals’ products.
Notably, the new product has been domestically developed by using for the first time in the world “Reel Type Prepreg,” a semi-solid (intermediate state between liquid and solid state) material, instead of “Reel Type Glass Epoxy,” which is being monopolized by Japan. Through this measure, LG Innotek cut the expense of conventional materials by 70 percent, and aims to spearhead both domestic and foreign markets.
LG Innotek had been developing circuit boards jointly with more than 10 global semiconductor and card companies since March 2010, and completed licensing process in December 2012. In the course of development, the Company applied for more than 30 patents, including overseas patents, among other achievements.
A LG Innotek official said, “The development of tape–type board for smart cards is all the more significant in that the Company has entered a market that has been monopolized by certain foreign companies for more than 30 years,” adding, “LG Innotek will step up efforts to develop products that can spearhead the market by banking on its core fundamental technology.”
The global smart card board market was valued at about 360 billion won in sales last year, and is projected to hit 650 billion won in 2017.
[Glossary]
Chip on Board (COB): A method in which semiconductor chips are linked directly onto a printed circuit board and formulated.
Reel to Reel: a method in which the material is wound from reel to reel using two reels. Since this method allows for continual production process, it is appropriate for mass production of products in small variety.
[Photo caption]
LG Innotek’s staff displays a tape-type board for smart cards that has been produced through the Reel to Reel method.
