“In the Internet era, we often say 'losing the network means losing contact'; however, in the AI era, the essence of connectivity has evolved into 'losing the network means losing intelligence.'” At the MWC Shanghai eSIM Summit, Chen Fengwei, Deputy General Manager of China Unicom Huasheng Communication Co., Ltd., highlighted the core pain points currently faced by smart terminals. For AI capabilities to seamlessly extend from the cloud to the edge, an omnipresent and uninterrupted intelligent connection serves as an indispensable foundation.
Echoing this sentiment, Sun Shiwei, Deputy General Manager of the Market Management Department and Director of the Product Center at China Mobile Communications Group, stated, 'Without flexible and reliable connectivity, large-scale deployment of on-device AI will be difficult to achieve.'
The consensus between these two telecom giants points to a communication technology that is now entering the fast track—eSIM (embedded SIM).
The Tipping Point for eSIM Explosion Based on Global Data
According to an industry research report by the GSMA, 2026 marks a critical milestone for the large-scale development of eSIM globally, with the proportion of eSIM connections in global smartphones set to double, reaching 10%. By 2030, the global penetration rate of eSIM will officially surpass that of traditional removable physical SIM cards.
Source: GSMA, photographed by EEFOCUS
In the Chinese market, the commercial pilot for smartphone eSIM, launched by the three major telecom operators following regulatory approval, is expected to drive smartphone eSIM shipments to reach up to 30 million units this year.
These figures collectively indicate that the tipping point for the large-scale commercialization of eSIM has arrived.
AI-Driven, eSIM is Entering the 2.0 Era
In 2026, the eSIM industry is reaching a critical turning point. While the core value of eSIM in recent years has been to address 'miniaturization' and 'convenient network access,' the explosive growth of AI terminals is propelling eSIM from a standalone communication module into a new 2.0 phase that comprehensively integrates identity, security, and intelligent connectivity.
Within this industrial upgrade chain, chip manufacturers, as providers of the underlying hardware, play a pivotal role in redefining the boundaries of intelligent connectivity. At the summit, Zou Chongren, Executive Vice President of UNIGROUP Guoxin, delivered a keynote speech titled 'AI-Driven eSIM Upgrade: Ushering in a New Era of Intelligent Connectivity,' providing an in-depth analysis of the generational shifts at the hardware level.
Source: UNIGROUP Guoxin
He pointed out that during the eSIM 1.0 era, the industry primarily focused on establishing basic communication capabilities, achieving a form factor transition from physical cards to embedded chips, which freed smartphones, smart wearables, tablets, and other devices from the constraints of card slots. Leveraging robust technical capabilities and industry-wide mass production experience, UNIGROUP Guoxin's eSIM 1.0 products pioneered the path for mass production of eSIM in China during the initial phase of the industry. In the 2.0 era, however, eSIM must evolve into a core hub that integrates a 'trusted identity carrier,' an 'interactive sensor information hub,' and 'device-cloud collaborative real-time connectivity.' It must not only handle cellular network authentication but also integrate multi-network authentication capabilities for Bluetooth, Wi-Fi, and even satellite networks, ensuring 24/7 stable connectivity for AI terminals across various scenarios.
Against this backdrop, UNIGROUP Guoxin launched a new-generation space-ground integrated AI eSIM product, achieving quantifiable breakthroughs across three major dimensions:
- AI Identity: The product not only supports both Chinese national cryptographic standards and international algorithms but also proactively incorporates PQC (Post-Quantum Cryptography) algorithms, preparing for future quantum computing threats. Meanwhile, the equipped ultra-large-capacity secure storage space better safeguards AI identity security.
- AI Security: Compared to the previous generation, the CPU clock frequency has increased by 60%, and encryption algorithm performance has improved by over 50%. This enables faster response times when handling high-concurrency data transmission from AI terminals and performing localized encryption of highly sensitive private data.
- AI Connectivity: The product supports multiple versions of MEP (Multiple Enabled Profiles) and satellite communication authentication. The global operator network adaptation coverage has increased by 37%, truly enabling seamless switching between terrestrial and satellite networks, serving as critical hardware support to resolve the pain point of 'omnipresent connectivity.'
Furthermore, the product has achieved additional breakthroughs in power consumption and activation speed: compatible with the 1.2V Class D low-voltage platform, its profile activation speed has increased by 54% compared to the previous generation, precisely meeting the demands of mainstream smartphone SoC platforms for ultimate energy efficiency and rapid provisioning over the next 3 to 5 years.
From 'Cumbersome Scanning' to 'One-Touch Connectivity': Enhancing Consumer Services
Technological advancements must ultimately translate into tangible consumer services. Previously, the process of handling smartphone eSIM services at offline business halls was cumbersome and posed security risks. Staff had to use barcode scanners multiple times to scan device barcodes, and users were required to scan dedicated QR codes to download their e-profiles. The entire process was highly reliant on manual operations, making it time-consuming and susceptible to information leakage.
Source: UNIGROUP Guoxin
To address this offline pain point, UNIGROUP Guoxin partnered with China Unicom to debut the industry's first 'Innovative Solution for Intelligent eSIM Terminal Provisioning' at this exhibition. Built upon the 5G eSIM Joint Innovation Laboratory co-established by both parties, and leveraging the deep integration of underlying hardware security chips with operator systems, the solution establishes three core security capabilities:
- Dedicated Direct Connection Channel: Establishes an independent, encrypted direct connection channel between the user terminal and the operator's backend. The system can automatically acquire core activation data in real time without manual scanning, significantly reducing service processing time.
- Two-Way Key Authentication: Adopts a standardized key exchange strategy to perform two-way data encryption and identity authentication between the operator system and the smartphone terminal, intercepting malicious attacks and data tampering risks at the very source of the transmission link.
- Multi-Level Certificate Verification: Utilizes a multi-CI certificate system to verify the legitimacy of the eUICC chip, ensuring that the identity of every terminal undergoing provisioning is authentic and traceable, thereby preventing unauthorized terminals from accessing the network.
Reportedly, this new model simplifies multiple manual steps—such as device verification, service provisioning, and profile downloading—into a single 'one-touch connectivity' action. This significantly enhances offline service efficiency, truly embodying a 'user-centric' approach.
Full Industry Chain Collaboration to Build a New eSIM Ecosystem
The full arrival of the eSIM 2.0 era cannot be achieved by a single entity. During this exhibition, it is evident that the entire industry chain—including operators, chip manufacturers, standards organizations, and terminal brands—is deeply collaborating and working in the same direction to jointly drive the maturation and implementation of the eSIM 2.0 industry ecosystem.
As the hub of the ecosystem, operators are clearing the path for the large-scale deployment of eSIM across multiple dimensions, including standards and platforms. China Mobile has taken the lead in establishing the eSIM Terminal Ecosystem Alliance and launched the 'X-eSIM' Initiative, focusing on three major directions: cross-device intelligence, service extension, and technological upgrading, to fully unleash the technical value of eSIM. Meanwhile, China Unicom announced that it will centrally procure a batch of eSIMs and provide them free of charge to a wide range of smart terminal manufacturers, helping small and medium-sized enterprises quickly integrate eSIM capabilities into their devices.
Source: UNIGROUP Guoxin
In this process, the role of chip manufacturers is also undergoing profound transformations. UNIGROUP Guoxin is transitioning from a pure hardware supplier to a comprehensive solution provider encompassing 'hardware + standards + ecosystem.' At the standards level, UNIGROUP Guoxin was deeply involved in drafting the 'eSIM Module Security Technology White Paper,' focusing on key chapters such as 'Overall Architecture and State Model,' 'Core Processes for Pairing and Mutual Authentication,' and 'Security Mechanisms,' providing a unified technical reference for the industry. At the production level, UNIGROUP Guoxin is the first domestic chip company to achieve GSMA SAS-UP certification, pioneering the upgrade of its wafer-level personalization production chain to meet the demands of large-scale expansion in the eSIM industry.
As envisioned by UNIGROUP Guoxin at the summit, embracing AI and empowering all things requires operators, terminal manufacturers, chip companies, and standards organizations to walk side by side. Every step in the journey of eSIM from a technical concept to widespread commercial adoption will bring together the wisdom and dedication of all parties across the industry chain.