Pax Silica

Pax Silica Initiative, led by the United States, is an economic security and technology partnership. It is seen as a strategic realignment in the age of chips and artificial intelligence. Read here to learn more.

The United States’ announcement that India will be invited to join the US-led Pax Silica initiative marks a significant deepening of India-US strategic and economic ties.

Coming amid intensifying geopolitical rivalry and global semiconductor shortages, Pax Silica reflects a growing recognition that control over silicon, semiconductors, and AI supply chains is central to national security, economic competitiveness, and technological sovereignty.

For India, participation in Pax Silica could reshape its role in global technology value chains, complementing domestic initiatives such as Semicon India, Design Linked Incentive (DLI) Scheme, and Digital India.

What is the Pax Silica Initiative?

Pax Silica is a US-led economic security and technology partnership aimed at building a secure, resilient, and innovation-driven global supply chain for:

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• Silicon and semiconductors
• Artificial intelligence (AI)
• Critical minerals
• Advanced manufacturing technologies

It represents a shift from pure free-market globalisation towards trusted, rules-based technology ecosystems.

Launch and Leadership

• Led by: United States (US Department of State)
• First Summit: December 2025

Participating Countries

• Core members: Japan, South Korea, Singapore, Netherlands, United Kingdom, Israel, UAE, Australia
• Guest partners: Taiwan, European Union, Canada, OECD

Key Features of Pax Silica

1. End-to-End Technology Chain Coverage

• Secures the entire value chain from raw materials (silicon, critical minerals) to advanced AI chips, fabs, and data infrastructure.
• Prevents chokepoints at design, fabrication, packaging, or logistics stages.

2. Trusted Technology Ecosystem

• Limits sensitive cooperation to reliable and politically aligned partners.
• Reduces risks of:
  • Intellectual property theft
  • Espionage
  • Sabotage of digital infrastructure

3. Long-Term Supply Stability

• Encourages coordinated investments in:
  • New fabrication plants (fabs)
  • Chip packaging and testing facilities
  • AI compute infrastructure

4. Anti-Dumping and Coercion Coordination

• Joint response mechanisms against:
  • Market flooding
  • Export coercion
  • Weaponisation of supply chains

5. Linking Economic and National Security

• Recognises that chips and AI are strategic assets, not mere commercial goods.
• Aligns trade policy with defence, cyber security, and strategic planning.

Strategic Significance of Pax Silica

US Perspective

• Creates a US-led AI-chip bloc controlling critical nodes of the global semiconductor ecosystem.
• Counters the concentration of manufacturing and rare-earth processing in geopolitically sensitive regions.
• Reinforces American leadership in next-generation technologies.

Global Implications

• Accelerates fragmentation of globalisation into “friend-shored” supply chains.
• Signals a move away from cost-only efficiency towards resilience and security-driven trade.

Why India Matters to Pax Silica

India’s inclusion is strategically important due to:

• Large domestic market for electronics and AI applications
• Growing semiconductor design ecosystem (fabless strength)
• Geopolitical credibility as a non-allied but trusted democracy
• Manufacturing potential backed by PLI and infrastructure push

India also occupies a critical position in balancing US-led technology blocs without being formally allied.

Benefits for India

1. Semiconductor and AI Ecosystem Boost

• Access to advanced chips, design tools, and global investors.
• Strengthens domestic initiatives like:
  • Semicon India Programme
  • Design Linked Incentive (DLI) Scheme
  • IndiaAI Mission

2. Strategic Supply Chain Security

• Reduces dependence on unstable or hostile suppliers.
• Enhances resilience for:
  • Defence electronics
  • Telecommunications
  • Digital public infrastructure

3. Defence and National Security Gains

• Reliable access to high-end semiconductors is critical for:
  • Missiles
  • Surveillance systems
  • Cyber and space capabilities

4. Economic and Employment Impact

• Attracts high-value manufacturing and R&D.
• Supports India’s ambition to move up the global value chain from assembly to design and innovation leadership.

Challenges and Concerns

Strategic Autonomy

• India must avoid being perceived as part of an exclusive bloc that limits its policy flexibility.
• Careful balancing is required with partners such as:
  • Russia
  • Global South
  • Non-aligned economies

Implementation Capacity

• Semiconductor fabs require:
  • Reliable power and water
  • Skilled workforce
  • Long-term policy stability

Risk of Tech Fragmentation

• Parallel technology standards could increase costs and reduce interoperability globally.

Conclusion

The Pax Silica initiative reflects a new era where technology, trade, and national security are deeply intertwined. India’s likely inclusion signals its rising stature as a trusted technology partner and a key pillar in resilient global supply chains.

If managed carefully, participation in Pax Silica can accelerate India’s semiconductor ambitions, strengthen strategic autonomy through diversification, and position the country as a major node in the global AI and chip ecosystem, without compromising its independent foreign policy tradition.