Your next phone may no longer have a SIM card slot. The transaction volume of iPhone Air on JD.com exceeded 100 million yuan in one second. Apple "ignited" the commercialization of eSIM phones. Where is the progress of domestic chip supply?
On October 13th, China Mobile, China Unicom, and China Telecom, the three major operators, "fully opened the floodgates" and were officially approved to conduct commercial trials of eSIM mobile phones. The pilot scope covers 31 provinces (autonomous regions and municipalities directly under the Central Government) across the country. Users can complete network registration without a physical SIM card.
Previously, Apple announced that the domestic version of the iPhone Air would be officially launched on October 22nd. This model is the first domestic smartphone that only supports eSIM. Data from JD.com on October 17th showed that the iPhone Air set a record of exceeding 100 million yuan in transaction volume within 1 second during the pre - sale period. Driven by this, domestic manufacturers such as Huawei and OPPO said they would gradually launch eSIM mobile phones.
The large - scale commercialization of eSIM mobile phones is imminent. From design, manufacturing to packaging and testing, how to achieve domestic supply is still "waiting for rice to cook". A reporter recently contacted several packaging and testing manufacturers and learned that they do not directly face terminal manufacturers. To understand how domestic eSIM chips are supplied, one needs to inquire with companies such as Unisoc Microelectronics (002049.SZ) and Tongfu Microelectronics (002156.SZ).
On October 20th, a person from the securities department of Unisoc Microelectronics told a reporter from National Business Daily over the phone that the company's eSIM card chip technology is mature and can be compatible with more than 400 operators globally. However, how many domestic operators can be selected for access and whether the cooperation partner is an operator or a mobile phone manufacturer, the business cooperation model still needs to be clarified.
There were reports that the core supplier of the eSIM chip for the iPhone Air is Universal Scientific Industrial (USI). However, the company denied this statement. On October 20th, a person from the securities department of Universal Scientific Industrial (601231.SH) told a reporter from National Business Daily over the phone that the company's business has no connection with Apple. "Some SiP modules applied to smart wearables integrate eSIM functions, and there are no independent eSIM modules applied to customers' end - side products."
The "Cardless Era" is Coming. Where is the Supply Process of Domestic eSIM Chips?
Recently, a reporter from National Business Daily contacted several manufacturers involved in eSIM chip business. Most people told the reporter that the commercial trial of eSIM mobile phones has just started. Although they have experience in the Internet of Things (IoT) eSIM business, it has not been applied to mobile phones. However, they will continue to pay attention to opportunities in this area.
The application of domestic eSIM in smartphones is in its infancy. In the past decade or so, relevant domestic policies have actively promoted the implementation of eSIM technology, going through four stages: exploration, pilot, suspension, and restart.
Since 2015, China Unicom took the lead in launching the research and development of eSIM technology. In 2017, China Mobile launched the world's smallest eSIM NB - IoT communication module. Subsequently, the domestic application of eSIM expanded from wearable devices to the IoT field. However, in 2023, the three major operators suspended the application for the eSIM one - number dual - terminal service and independent eSIM card handling simultaneously on the grounds of "business maintenance and upgrade", and the domestic eSIM market stagnated. The business progress of chip design, packaging and testing, terminal manufacturing, and supporting material enterprises in the eSIM industry chain was also affected.
Unisoc Microelectronics is the first domestic chip manufacturer to achieve global commercialization of eSIM. The company has successfully launched and mass - produced multiple eSIM products that meet the GSMA (Global System for Mobile Communications Association) and domestic communication standards.
A person from the company's securities department introduced to the reporter that the company has sales in the eSIM chip business, mainly divided into two scenarios: one is in the mobile phone market, and the products are only sold in overseas markets; the other is in non - mobile phone application scenarios, and there are already domestic use cases.
On September 22nd this year, Huada Electronics posted on its official website: "The company and Valid, a global leading eSIM service provider, jointly announced that the SGP.22V2.5 eSIM operating system (OS) jointly developed by them has fully passed the GSMA eUICC Security Assurance (eSA) certification. This major technological breakthrough will empower global device manufacturers to provide users with a seamless and secure eSIM experience."
Even though there have been no domestic implementation cases before, relevant manufacturers are actively paying attention to the huge opportunities that eSIM may bring.
On October 17th, a person from the securities department of Xinhenghui (301678.SZ) told the reporter that the company will pay attention to changes in the eSIM market demand, actively develop new technologies and processes, and strive to expand its market share.
On October 19th, a chip packaging and testing technology expert from Changjiang Electronics Technology (600584.SH) told a reporter from National Business Daily that Changjiang Electronics Technology has advanced packaging technologies such as the industry - leading Wafer - Level Chip Scale Packaging (WLCSP) and has accumulated rich mass - production engineering experience and global delivery capabilities, which can be applied to the relevant packaging fields of eSIM card chips.
"The company is optimistic about the market opportunities in the eSIM field and is willing to work with relevant partners to continuously promote the development of mobile terminal products towards being thinner, lighter, more intelligent, and having a better user experience," said the above - mentioned packaging and testing technology expert.
Domestic Enterprises are "Waiting for Rice to Cook": The Technology is Mature, but How to Cooperate Still Needs to be Clarified
The core of domestic supply of eSIM mobile phone chips does not lie in technology, but in the relevant agreements and details of how eSIM is embedded in mobile phones under the new business model.
A person from the securities department of Unisoc Microelectronics introduced to the reporter that it has not been determined whether the direct customers are mobile phone manufacturers, operators, or other parties. After the Ministry of Industry and Information Technology and operators lead to clarify the operation model, the final cooperation plan can be determined. The company's eSIM card chip technology is mature and can be compatible with more than 400 operators globally. However, how many domestic operators can be selected for access and whether the cooperation partner is an operator or a mobile phone manufacturer still need to be clarified.
"We have to wait for the relevant detailed rules to come out before we can determine the supply plan for domestic mobile phone eSIM chips. After all, we can't even determine the cooperation partner now, let alone specific shipments and orders," the above - mentioned person told the reporter.
In promoting eSIM business, the action strategies of the three major operators vary to some extent. China Mobile has clearly proposed to carry out domestic technological research on eSIM chips and operating systems, and to research and develop more powerful and secure eSIM terminals and chips.
China Unicom said that the company has always led the application and innovation of eSIM technology. Since starting technology research and development in 2015, launching the eSIM wearable service in the domestic market in 2018, and gradually obtaining business licenses for the IoT, laptops, and tablets, it has cumulatively adapted 75 types of terminals, and the number of service users has exceeded millions. In the future, it will continue to work with all parties in the industry chain to build an open, collaborative, and win - win eSIM industrial ecosystem.
China Telecom said that it will work with industrial chain partners to build an "open, collaborative, and win - win" eSIM industrial open ecosystem, and jointly promote the innovation of terminal forms, the reconstruction of service models, and the upgrading of the industrial ecosystem in the communication industry.
According to a report on October 20th, Arun Mathias, the vice - president of wireless software technology and ecosystem at Apple, and Anjali Jotwani, a member of the wireless technology team, clearly stated in an interview with domestic media recently that they will launch the eSIM Quick Transfer function in the Chinese mainland market in the future.
Whether domestic chips can meet the market demand is related to the cardless battle in the new round of development of the domestic communication industry, which is yet to kick off.
This article is from the WeChat official account "National Business Daily". Author: Zhang Baolian, Zhu Chengxiang. Editor: Cheng Peng, Zhang Yiming, Du Bo. Proofreader: Duan Lian. Republished by 36Kr with authorization.