Unlike a physical SIM card that is inserted into a device, an E-sim is a chip that is directly mounted to the motherboard of a device.
It improves reliability and network security while reducing the space requirements which gives the manufacturers some more space to put more user-desired features like a battery with more capacity or vice versa.
Recently an MEP (Multiple Enabled profiles) implementation has been spotted in the codebase of Google's upcoming Android 13. It was a patent submitted by Google in late 2020 according to which MEP permits several SIM profiles to run on a single integrated chip. This is made possible by dividing the physical data bus that connects the E-sim chip and modem to many logical interfaces.
To make this work, Google is creating logical interfaces that are multiplexed on a single physical interface. Each logical interface will provide an independent communication channel between a SIM profile and modem so that there will be a single actual physical connection to the modem. No re-routing of wires is needed. Thus existing Smartphones with a single E-sim chip connected to a modem can theoretically support MEP. From the modem’s point of view, there’s no difference between a logical and physical interface, thus allowing for backward compatibility with current implementations.