India is set to join the US-led Pax Silica initiative later this month. Anvitii Rai explains why inclusion in this niche club matters for India, and how it can facilitate potential partnerships on the technology supply chain, building on the India-US trade deal momentum
The Pax Silica initiative
Pax Silica is a US-led initiative on artificial intelligence (AI) and tech supply chain security that the US Department of State describes as its flagship effort to build a new economic security consensus among allies and trusted partners. At its core, the initiative seeks to consolidate the resources of participating countries to develop and deploy trusted information networks, spanning information and communication technology systems, fibre-optic cables, and data centres. The emphasis on cooperation was underlined by US Under Secretary for Economic Affairs Jacob Helberg, who framed the declaration as the foundation of a shared approach to building the AI ecosystem of the future. Analysts interpret this push as a response to concentration risks in AI infrastruc-ture, particularly China’s dominance over critical minerals essential to AI hardware and semiconductor supply chains. The initial signatories— Japan, Australia, Greece, Israel, Qatar, South Korea, Singapore, the United Arab Emirates, and the United Kingdom—reflect a coalition combining strengths in AI research, semiconductor design and manufacturing, capital, and digital infrastructure.
The need for this niche league
The 21st century AI race will be shaped less by algorithms than by control over the physical infrastructure that enables them. Semiconductors sit at the heart of this contest, as modern electronics rely on integrated circuits that require materials such as silicon and germanium. This vulnerability was laid bare during the Covid-19 pandemic, when disruptions at key manufacturing hubs and a surge in demand for consumer electronics shocked global semiconductor supply chains.
These stresses intensified the US-China technology rivalry, prompting Washington to reassess its dependence on concentrated supply nodes. Pax Silica emerges from this context as a shift from unilateral decoupling towards coordinated collaboration with allies that share concerns over Beijing’s growing lead in AI-linked infrastructure.
India’s inclusion
Pax Silica includes several non-signatory participants—such as Canada, the European Union, the Netherlands, the OECD, and Taiwan—making India’s initial absence less exceptional than it may appear. Other advanced nations, including Finland, France, Germany and Italy, were also not part of the founding group. While some observers linked India’s initial exclusion to trade frictions with the US, most analyses suggest it reflected the initiative’s early design and strategic alignment. The first phase prioritised countries with established strengths in AI infrastructure, semiconductor manufacturing or critical mineral supply chains. India, in contrast, was still scaling up semi-conductor fabrication and supporting infrastructure, and has limited mineral processing capacity. Its inclusion, especially after the trade deal with the US, reflects a shift in emphasis —from existing capability to future demand, market scale, and the need to diversify trusted supply chains as India’s role in the global semiconductor ecosystem expands. Helberg is part of the team of senior US officials visiting New Delhi later this month when India would be formally included in the Pax Silica family of nations.
Multiple benefits
India’s inclusion provides access to trusted semiconductor and AI supply chains, a critical requirement as domestic demand rises sharply across sectors. This access also offers diversification benefits. India currently imports nearly 93% of its rare earth supplies from China, leaving key industries vulnerable to supply disruptions. Recent Chinese restrictions on rare earth exports have underscored how such concentration risks can quickly translate into economic pressure. Beyond supply security, Pax Silica offers domestic upside through cooperation. Partner countries bring established strengths in areas such as semiconductor design, advanced compute, and manufacturing ecosystems. Engagement with these partners can help accelerate India’s own ambitions under initiatives like the India Semiconductor Mission by reducing execution risk, improving technological know-how, and integrating Indian firms into global value chains. India’s participation is thus not just about access to raw materials but also about developing trusted processing capacity, allied supply chains, and the ability to scale manufacturing.
Are there any downsides?
India has preferred strategic sovereignty, and being a participant in Pax Silica might undermine that. While the US has underlined cooperation as the core principle, it remains to be seen if that would actually be the case.
India is also not among the top nations in terms of natural reserves, natural resources, or manufacturing and processing capability, so it risks being undermined by those that possess such capabilities. Moreover, China’s headstart in the AI race is largely due to lax environ-ment laws being lax, and India could risk being exposed to similar pressures in a bid to play catch-up. Policies for data localisation, cybersecurity and labour are also vulnerable to the same. Finally, diverting from China may not result in self-reliance.