IDEMIA Aims to Revolutionize Automotive Sector with SIM Tech Expansion

French technology giant IDEMIA, known for its digital and physical SIM (Subscriber Identity Module) platforms and other identity-related security services, is set to make a significant entry into the automotive sector in India. The company aims to supply its tech platforms for an anticipated market of 30 million connected vehicles in India by 2025-26, encompassing both internal combustion engine (ICE) and electric vehicles. The 2.9 billion euro enterprise plans to manufacture these SIM platforms locally in India, ensuring essential vehicle connectivity to mobile telecom networks.

IDEMIA’s factory in India contributes 10 percent to its global SIM capacity. The factory manufactures the chips embedded in the product, importing only the wafers from fab plants. Once the newly approved fab plants are operational, IDEMIA plans to source the wafers domestically. Presently, over 60 percent of its production in India is exported to more than 50 countries.

Philippe Oliva, CEO of IDEMIA Secure Transactions, said that whether it was an electric car, a two-wheeler, or an old-fashioned ICE vehicle, the reality was that all of them would become connected. “For instance, a very famous Korean car manufacturer is considering that 100 percent of the new car they’re going to produce needs to be connected. It is a massive growth area. We have a 40 percent share of the global automotive-connected vehicle market. And we want a big play in India where we will also manufacture them,” said Oliva. He added that his was the only company in the business which has a trusted source certification from the Indian government for the automotive platform.

In Europe, he estimated that close to 10 million connected cars per year will be on the streets. “But India is going to be far beyond those numbers in terms of overall vehicles. Our expectation is India will have a market of 30 million connected vehicles, which will include cars and two-wheelers, amongst others, by 2025-26”, said Oliva.

IDEMIA guarantees its digital e-SIM platforms are supported by robust service agreements with clients, further reinforced by an incremental disaster recovery capability. Regarding its chip initiatives, Olivia mentioned that IDEMIA has advanced in the semiconductor industry by importing wafers and manufacturing chips in India.

Many countries are contemplating their sovereignty needs, preferring physical SIMs over embedded SIMs due to concerns about controlling the encryption layer. However, IDEMIA asserts that its digital e-SIM provides the same level of encryption and security as physical SIMs. The company also sees significant potential in supplying its technology for smart meters. With the government planning to install smart meters in over 150 million households, IDEMIA is aggressively pursuing opportunities in this sector.