NM4587 SIMs are extremely isolated and don't have control over the device. They're used to authenticate with a carrier. When the cellular radio and SIM are enabled, it authenticates your cellular service subscription with the cellular network. The cellular network inherently knows where you are based on the cell towers you're connected to.
[deleted] The SIM card isn't doing location detection, it's simply authenticating you with the network. The network knows where you are based on whether you're connected to it. You can choose when cellular is active via airplane and also when the SIM is active (Wi-Fi texting/calling exists too).