A chip card holding mechanism includes a tray, a supporting plate, an unlocking member, a driving arm, and an elastic member. The unlocking member includes a base body, an unlocking block formed on the base body, and a rotation portion protruding from the base body. The supporting plate defines a first sliding groove, and forms a first block. The driving arm defines a second sliding groove, and forms a second block positioned thereon. The first block is received in the second sliding groove, and the second block is received in the first sliding groove. The elastic member is compressed between the first block and the second block. The rotation of the rotation portion is capable of driving the unlocking block to rotate, thereby releasing the elastic member.