India in Talks With US to Join Pax Silica Supply Chain

• India is in talks to join Pax Silica, a US-led initiative for securing critical minerals and tech supply chains, potentially by 2026
• Pax Silica aims to reduce reliance on China, with countries like Japan, South Korea, and the UK already on board
• The US sees India as a key partner for supply chain security, with no link to trade tensions

India and the USA are having talks on the US-supported consortium Pax Silica, which is aimed at securing the silicon supply chain for critical minerals and advanced technologies, and New Delhi's possible joining of it.

US Undersecretary of State for Economic Affairs, Jacob Helberg, stated, India could be a part of the project in the first half of 2026, together with other potential partners as the initiative broadens. Pax Silica is set up as a strategic move to counter the ascendancy of China in the fields of AI and semiconductor production.

Helberg further mentioned that the European Union and Taiwan might have certain roles in the wider supply chain, which points out the necessity of securing raw materials for AI development. He remarked that the USA will participate in the IndiaAI Impact Summit scheduled in New Delhi for February 2024, which indicates the increasing collaboration between the two countries.

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Pax Silica is setting up a supply chain that is resilient and innovation-driven and that will encompass critical minerals, energy, semiconductor manufacturing, and AI infrastructure.

The interim alliance formed in December 2023 and included the signing of countries, such as Japan, South Korea, Singapore, and the UK. It is considered a reaction to China's growing power in the semiconductor sector.

India’s position was clarified by Helberg who stated the reason for its non-participation in the initial signatories was not related to trade issues. He went on to say that the US considers India to be a vital ally in the security of the supply chain and thus is very eager to foster collaboration which is supported by daily communication between the officials to figure out fast ways for engagement.