Home
Company
Product
Regulation
China
Data
Exhibition
Interview
中文版
Home
Company
Product
Regulation
China
Data
Exhibition
Interview
中文版
Search

KT&G Supplier ITM Semiconductor Posts $20M in Q1 2025 Heated Tobacco Sales, Up 5.6% YoY

May.23.2025
KT&G Supplier ITM Semiconductor Posts $20M in Q1 2025 Heated Tobacco Sales, Up 5.6% YoY
KT&G’s supplier, ITM Semiconductor, posted $20 million in heated tobacco sales in the first quarter of 2025, up 5.6% from a year earlier and accounting for one-fifth of total revenue. Buoyed by rising demand for the Lil Hybrid 3.0 device, the firm plans to expand production capacity at its plants in South Korea and Vietnam.

Key points:

 

1.Korea Tobacco & Ginseng Corporation's (KT&G) partner company, ITM Semiconductor, has achieved significant growth in its heated tobacco business, becoming the main focus of the company.

 

2.In the first quarter, sales of heated tobacco reached $20 million, showing a year-on-year growth of 5.6%.

 

3.ITM Semiconductor plans to further expand its production capacity by enlarging its production lines at both its domestic and Vietnam factories.

 

 

According to reports from South Korean media outlet Metroseoul, ITM Semiconductor's heated tobacco business saw strong sales growth in the first quarter of 2025, with sales reaching 271 billion Korean won (200 million US dollars), a 5.6% increase compared to the same period in 2024. This growth has quickly made the heated tobacco business one of the company's main revenue streams, accounting for 20% (1 billion US dollars) of total sales.

 

Currently, ITM Semiconductor produces four types of heated tobacco products for KT&G in South Korea, including the Lil Hybrid 3.0 device and accessories introduced last year. The products have been performing well in the European market. In the second half of this year, the company expects to significantly increase deliveries of these products, leading to rapid growth in sales revenue.

 

In addition, three out of the four heat-not-burn tobacco products produced for KT&G have been adopted as global strategic export products by KT&G. As a result, ITM Semiconductor is working to expand its production lines at its domestic and Vietnam factories, in order to improve quality and supply chain management.

 

The CEO of ITM Semiconductor, Na Hyuk-hwi, stated that with the increasing variety of heated tobacco products, the company expects sales to significantly increase. The company also plans to expand into new sectors such as robotics and defense while focusing on their core businesses of circuit protection and heated tobacco products.

 

According to publicly available information, ITM Semiconductor is a major supplier and partner of KT&G for heated tobacco products. Specific cooperation includes:

 

·Product Supply: ITM Semiconductor provides key components for KT&G's "lil" series of heated tobacco products, such as the "lil HYBRID" model. ITM Semiconductor was once the exclusive supplier for these components. They also manufacture and supply complete heated tobacco devices and pods. 

 

·New Model Development: The two companies are collaborating on developing new models of heated tobacco products, including models targeted for export markets. There are reports that a new product development contract has been signed, with the goal of mass production by 2026. 

 

·Production Expansion: Due to the growing demand for KT&G's heated tobacco products, especially for export models, ITM Semiconductor is expanding its production lines in South Korea and Vietnam.

 

References:
[1] 아이티엠반도체, 전자담배 매출 '훌쩍'…주력사업 자리매김
Also Read:
[1] KT&G Shifts HTP Production to Malaysia, 'lil Hybrid 3.0' Supply Normalizes
[2] Korea Tobacco Reports Q1 2025 Results: Net Profit Down 9.7% YoY to $180M, Heated Tobacco “lil Hybrid” Domestic Revenue Up 6.5%
[3] South Korea’s Tobacco HTP Device "Lil Solid" FIIT Series Pods Price Cut Effective from May
[4] KT&G Accelerates HNB Expansion: New Central Asia Plant Completed, Leadership Reshuffle, Lil Hybrid 3.0 Enters Japan
[5] PMI Japan Launches KT&G lil HYBRID 3.0 Device

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn

Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

China Tobacco Regulation Shift：Policy Updates and Market Impact
China Tobacco Regulation Shift：Policy Updates and Market Impact
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
The U.S. Food and Drug Administration (FDA) has named Jessica Zeller director of the Center for Tobacco Products' (CTP) Office of Compliance and Enforcement (OCE), effective November 1, 2026. Zeller, the office's inaugural deputy director, returns from medical device manufacturer Edwards Lifesciences with more than 20 years of regulatory and legal experience. The appointment follows CTP leadership changes and adjustments to tobacco regulation. Bret Koplow became permanent CTP director in September; the FDA revised enforcement priorities for unauthorized e-cigarettes and nicotine pouches in May and announced faster PMTA review procedures. On September 28, the agency said it would evaluate changes to the existing PMTA regulatory framework, including potential rulemaking to replace it.
FDA
Oct.20 by 2Firsts Perspectives
U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives said on September 23 that it has joined the interagency Trade Fraud Task Force to strengthen enforcement against illegal, misdeclared and smuggled vape and tobacco products. ATF will bring its authority under the Prevent All Cigarette Trafficking Act into the task force, including registration, reporting, shipping and record-inspection requirements covering interstate sales of electronic nicotine delivery systems. ATF said the move will strengthen its ability to trace illicit products from U.S. points of entry through domestic trafficking and distribution networks.
News
Sep.28 by 2Firsts Perspectives
2Firsts Hosts China Market Forum at InterTabac as Global Industry Attention to China’s Tobacco Sector Deepens
2Firsts Hosts China Market Forum at InterTabac as Global Industry Attention to China’s Tobacco Sector Deepens
On September 16, 2Firsts hosted a China-focused industry forum during InterTabac in Dortmund, bringing together more than 30 participants from North America, Europe, India, South Korea and other markets. The session covered traditional tobacco, next-generation products, exports, technology, regulation and supply chains, while examining how China’s tobacco sector operates, where its transformation may be heading, and why its growing role matters increasingly to companies across the global tobacco and nicotine industry.
Sep.21
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
Philip Morris International has published its first report aligned with the Taskforce on Nature-related Financial Disclosures, bringing its electronics supply chain and the use and end-of-life stages of smoke-free devices and consumables into its nature-related assessment. PMI said its smoke-free business accounted for about 42% of total net revenues in the second quarter of 2026. The report says non-circular electronic products, particularly single-use items, can increase consumption of limited natural resources and also details an IQOS repair pilot. A 2040 circularity scenario tests assumptions including a 50% reduction in product waste-related costs, 10% raw-material savings and a 25% substitution rate for refurbished products versus new products.
Sep.23
How Investors Are Repricing the Global Tobacco Industry as Nicotine Markets Shift
How Investors Are Repricing the Global Tobacco Industry as Nicotine Markets Shift
How are investors reassessing the global tobacco industry as nicotine markets evolve? In an interview with 2Firsts, Charlie Chen, Head of Research at CCB International Securities, forecasts annual growth of 30–50% for nicotine pouches, outpacing vaping and heated tobacco. He examines how regulatory enforcement, shifting market shares and new business models are influencing company valuations. The report also explores differences between multinational tobacco groups and Chinese companies, drawing on insights from the New Approaches Summit on profitability, investment strategies and industry consolidation.
Nov.11
FDA Authorizes 24 VELO Nicotine Pouches, Increasing U.S. Authorized Total by 56%
FDA Authorizes 24 VELO Nicotine Pouches, Increasing U.S. Authorized Total by 56%
The U.S. FDA authorized 24 VELO nicotine pouch products from a British American Tobacco subsidiary, raising the total number of authorized products from 43 to 67, a 55.8% increase. The newly authorized 4 mg products include lime and passion fruit flavors and feature certified child-resistant packaging. VELO's first FDA marketing authorization adds BAT to a list previously limited to PMI and Altria products, while bringing the agency's nicotine pouch review pilot total to 47 authorized products.
Oct.30
Related Topics
HEADLINE News Company Product
Related Read
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
2Firsts Perspectives
U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
2Firsts Perspectives
2Firsts Hosts China Market Forum at InterTabac as Global Industry Attention to China’s Tobacco Sector Deepens
2Firsts Hosts China Market Forum at InterTabac as Global Industry Attention to China’s Tobacco Sector Deepens
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
How Investors Are Repricing the Global Tobacco Industry as Nicotine Markets Shift
How Investors Are Repricing the Global Tobacco Industry as Nicotine Markets Shift
FDA Authorizes 24 VELO Nicotine Pouches, Increasing U.S. Authorized Total by 56%
FDA Authorizes 24 VELO Nicotine Pouches, Increasing U.S. Authorized Total by 56%
FOLLOW US ON SOCIAL MEDIA
Contact: info@2firsts.com
Stay up to date.
Submit your email to receive weekly newsletter on the most relevant news of the e-cigarette industry.
© 2026 2FIRSTS. All Right Reserved.
2FIRSTS is only accessible to industry practitioners, researchers, media and other professionals. Access by minors is prohibited.
This website provides services to users outside the Chinese mainland.
English
English
中文