Why in the News?

• India is likely to be invited to join the U.S.-led Pax Silica initiative aimed at securing global semiconductor, AI, and critical mineral supply chains.

What’s in Today’s Article?

• Pax Silica (Background, Global Context, Objectives, Key Members, India’s Perspective, Challenges, Way Forward)

Understanding Pax Silica

• Pax Silica is a multilateral initiative launched by the United States in December 2025 to secure supply chains of critical technologies such as semiconductors, artificial intelligence (AI), and rare earth elements (REEs).
• The term “Pax” denotes peace, while “Silica” refers to silicon-based semiconductor technologies, symbolising a stable and cooperative global technology order.
• The Pax Silica Declaration emphasises three core objectives:
  • Reducing coercive economic dependencies,
  • Ensuring secure global technology and AI supply chains, and
  • Building trusted digital infrastructure.
• The initiative reflects growing concerns that over-dependence on a single country for critical inputs can expose economies to geopolitical coercion.

Global Context Behind Pax Silica

• The global economy is witnessing a shift where advanced technologies such as AI, semiconductors, and digital infrastructure are becoming central to economic and strategic power.
• At the same time, supply chains for rare earths and critical minerals remain highly concentrated.
• China currently dominates the global supply of rare earth elements and processing capabilities.
• In recent years, it has used export restrictions as a strategic tool, including suspending REE exports following tariff disputes with the U.S. India too faced disruptions in rare-earth magnet supplies, affecting its automobile and electronics industries.
• The COVID-19 pandemic further exposed vulnerabilities of globally fragmented and concentrated supply chains, prompting countries to pursue diversification and resilience strategies.

Key Members of Pax Silica

• The Pax Silica grouping brings together technologically advanced and resource-rich countries.
• Key participants include the United States and Japan as technology leaders; Australia as a major lithium and rare-earth exporter; the Netherlands for advanced lithography technologies; South Korea for memory chip manufacturing; and Singapore for semiconductor fabrication.
• Israel contributes expertise in AI software, defence technologies, and cybersecurity, while the United Kingdom hosts one of the world’s largest AI markets.
• Gulf countries such as Qatar and the UAE add financial strength through sovereign investment funds.
• Canada, the European Union, OECD, and Taiwan currently participate as observers.

India’s Strategic Relevance

• India is not yet a formal member but is expected to be invited soon. India brings several strengths to Pax Silica.
• It has one of the world’s most robust digital public infrastructures, a rapidly growing AI market, and a large pool of skilled technology professionals.
• The Government of India has also launched the India Semiconductor Mission and national AI initiatives with significant financial support.
• Investments by Indian firms such as the Tata Group and foreign companies like Micron indicate growing confidence in India’s semiconductor ecosystem.
• Additionally, a steady return of skilled Indian professionals trained abroad could strengthen domestic capabilities.

Existing Supply Chain Initiatives Involving India

• India has already taken steps to enhance supply chain resilience. In 2021, it joined Australia and Japan in launching the Supply Chain Resilience Initiative.
• India is also part of the Quad’s Critical Minerals Initiative, aimed at securing emerging technology supply chains.
• Collaborations with Japan, Singapore, and Israel in semiconductor manufacturing further position India as a credible partner in Pax Silica-aligned ecosystems.

Challenges for India in Joining Pax Silica

• Despite the opportunities, India faces challenges. Pax Silica members are largely high-income U.S. allies, whereas India would be the first developing country and non-ally strategic partner in the grouping.
• This may create expectation gaps on policy alignment and strategic responses.
• India also prioritises strategic autonomy and may resist frameworks that constrain independent foreign or economic policy choices.
• Moreover, India may seek to protect its nascent semiconductor and AI industries through subsidies, procurement preferences, and calibrated import controls, policies that may not fully align with the current U.S. policy environment.

Strategic Implications and the Road Ahead

• The emergence of Pax Silica signals the likelihood of two parallel global technology supply chains, one centred around China and the other around Pax Silica countries.
• Given India’s long-standing technological collaboration with Western economies and recent supply disruptions from China, aligning with Pax Silica appears strategically advantageous.
• However, India is expected to proceed cautiously, engaging in dialogue to ensure that participation strengthens domestic capabilities without compromising strategic autonomy or development priorities.