South Korea’s electronic materials and parts supplier LG Innotek Co. has completed construction of a manufacturing facility for thermoelectric semiconductors in Gumi, North Gyeongsang Province, the company announced Tuesday.

A thermoelectric module is a cutting-edge component that uses Peltier effect and Seebeck effect. The Peltier effect is the phenomenon in which one side is heated while the other side is cooled when supplying electricity to a semiconductor element. The Seebeck effect creates electric power through a temperature difference.

The company plans to start mass production of the thermoelectric semiconductors it successfully developed with its own technology. Its thermoelectric module is applied with nano-polycrystalline materials that help enhance strength and energy efficiency to expand its applications beyond home appliances to automobiles and vessels.

Thanks to the compact size, the thermoelectric semiconductor makes it possible to produce smaller and quieter home appliances. It also helps minimize data loss when applied to transmission equipment, according to the company.

For cars or ships, the component will reduce fuel consumption and carbon emissions as it can transform waste heat into electricity, the company said.

“For a 1,600cc diesel car that can get 18 kilometers (11.2 miles) per liter, our thermoelectric semiconductor increases the fuel mileage to 19.8 kilometers,” said an official from the firm. The component will also help shipbuilders to deal with the stringent air pollution guideline of the International Maritime Organization (IMO) that will be introduced in 2020, he added.

The global thermoelectric module market is projected to expand from $471.5 million in 2017 to $626.7 million by 2020, according to market research firm Technavio.

On Tuesday, shares of LG Innotek rose 3.38 percent to close at 153,000 won.

By Kang Doo-soon and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]