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
Special Report | Altria Subsidiaries Sue FDA to Vacate 2021 PMTA Rule as Agency Moves to Speed Reviews
Special Report | Altria Subsidiaries Sue FDA to Vacate 2021 PMTA Rule as Agency Moves to Speed Reviews
2Firsts reviewed the original federal court complaint filed by Altria subsidiaries Helix Innovations and NJOY on Sept. 2 challenging FDA’s 2021 PMTA rule. The lawsuit questions whether FDA’s review process complies with the Tobacco Control Act’s 180-day timeline, even as the agency moves to accelerate PMTA reviews and issues more marketing orders. Drawing on the complaint, FDA records, government audits and recent court rulings, 2Firsts examines the legal arguments, supporting evidence and potential implications for the U.S. tobacco review system.
Regulations
Sep.03
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
BAT Rothmans says it previously considered exiting South Korea's vaping market because of competitive pressure from unregulated products, but is now reassessing conditions following changes to the country's nicotine regulatory framework. Vuse and other BAT vaping products remain available through existing distribution channels. The statement followed a South Korean media report that interpreted BAT's broader withdrawal from selected Vapour markets as a full exit from South Korea. Meanwhile, Philip Morris International launched VEEV inPRIME in the country in June and began expanding distribution to around 14,000 convenience stores and other retail channels in July. The contrasting moves highlight differing investment strategies as South Korea's regulated vaping market evolves.
Aug.14
Former Roche Neuroscience and Rare Diseases Communications Director Ria Kioupritzi Joins PMI as Scientific Affairs Director
Former Roche Neuroscience and Rare Diseases Communications Director Ria Kioupritzi Joins PMI as Scientific Affairs Director
Eleftheria (Ria) Kioupritzi, a biopharmaceutical professional with more than 15 years of experience, has joined Philip Morris International as Director Scientific Affairs within Corporate Affairs. She previously served at Roche as Senior Scientific Communications Director for Neuroscience and Rare Diseases and worked extensively in spinal muscular atrophy. Her earlier career also covered competitive intelligence, clinical and regulatory monitoring, pipeline development and launch preparation. During her time working in Roche's SMA field, Evrysdi passed through several U.S. FDA milestones, including its initial approval, an expanded indication for younger infants and approval of a tablet formulation. Public records do not show that Kioupritzi herself led the FDA submissions.
Sep.22
Inside Nicotine-Pouch M&A Through Imperial's Yoik Deal: Latham, KPMG, PwC, Goldman Sachs and Morgan Stanley Form the Adviser Lineup
Inside Nicotine-Pouch M&A Through Imperial's Yoik Deal: Latham, KPMG, PwC, Goldman Sachs and Morgan Stanley Form the Adviser Lineup
Imperial Brands' acquisition of Swedish Helwit owner Yoik Group AB has highlighted the professional-services firms supporting cross-border oral nicotine M&A. Latham & Watkins and KPMG advised Imperial, while PwC and TM & Partners advised Yoik. KPMG also appeared on Imperial's acquisition of Black Buffalo earlier in 2026, while PwC played an extensive role in KT&G's acquisition of Swedish nicotine-pouch company Another Snus Factory. Imperial's public disclosures put the global modern oral nicotine delivery market at approximately £8.8 billion in retail sales and 23.5 billion pouches in 2024
Sep.20
Product | VAPORESSO Launches PRIX MTL Pod, With NFC Version Linking Interchangeable Panels to On-Screen Animations
Product | VAPORESSO Launches PRIX MTL Pod, With NFC Version Linking Interchangeable Panels to On-Screen Animations
VAPORESSO introduced the PRIX MTL pod system in August 2026 in two versions, Filter and NFC. The Filter version allows users to switch between a conventional drip tip and a filter tip, while the NFC version links interchangeable panels to matching on-screen animations. PRIX features a 2,600mAh battery, a 5.5ml pod, a 0.87-inch TFT display and a maximum output of 40W, alongside Dual Mesh Impact Pods capable of operating at two resistance and power configurations. VAPORESSO's French website lists MSRP at $39.99 for the Filter version and $49.90 for the NFC version.
Market
Aug.24 by 2Firsts Perspectives
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
The Zhengzhou Tobacco Research Institute of China National Tobacco Corporation has filed a patent application for an end-to-end method to analyze the migration and transformation of chemical compounds in heated tobacco products. Using GC-Orbitrap/MS non-targeted analysis, the method compares tobacco substrate and aerosol samples to distinguish compounds transferred directly from the substrate from those newly formed during heating, while also calculating transfer rates. In an example involving nine heated tobacco products, the patent identified 17 newly formed thermal decomposition compounds and 38 transferred compounds.
Aug.13
Related Topics
HEADLINE News Company Product
Related Read
Special Report | Altria Subsidiaries Sue FDA to Vacate 2021 PMTA Rule as Agency Moves to Speed Reviews
Special Report | Altria Subsidiaries Sue FDA to Vacate 2021 PMTA Rule as Agency Moves to Speed Reviews
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
Former Roche Neuroscience and Rare Diseases Communications Director Ria Kioupritzi Joins PMI as Scientific Affairs Director
Former Roche Neuroscience and Rare Diseases Communications Director Ria Kioupritzi Joins PMI as Scientific Affairs Director
Inside Nicotine-Pouch M&A Through Imperial's Yoik Deal: Latham, KPMG, PwC, Goldman Sachs and Morgan Stanley Form the Adviser Lineup
Inside Nicotine-Pouch M&A Through Imperial's Yoik Deal: Latham, KPMG, PwC, Goldman Sachs and Morgan Stanley Form the Adviser Lineup
Product | VAPORESSO Launches PRIX MTL Pod, With NFC Version Linking Interchangeable Panels to On-Screen Animations
Product | VAPORESSO Launches PRIX MTL Pod, With NFC Version Linking Interchangeable Panels to On-Screen Animations
2Firsts Perspectives
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
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