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Pax Silica initiative and its relevance for India

21 Jan 2026 GS 2 International Relations
Pax Silica initiative and its relevance for India Click to view full image

Changing global economic context

  • Persistent North–South divide in income and resource use continues.

  • However, semiconductors, Artificial Intelligence (AI), and critical minerals are emerging as decisive drivers of the global economy.

  • These technologies are now central to:

    • Economic competitiveness

    • National security

    • Everyday life (digital services, mobility, defence, healthcare)

What is Pax Silica?

  • Inaugural Pax Silica Summit convened by the U.S. on December 12, 2025.

  • Meaning:

    • Pax (Latin): Peace

    • Silica: Core input in semiconductor manufacturing

  • Core objectives (as per Pax Silica Declaration):

    • Reduce coercive dependencies in critical technologies

    • Secure global tech and AI supply chains

    • Build trusted digital infrastructure

  • Focus areas:

    • Rare Earth Elements (REEs)

    • Semiconductors

    • AI

    • Advanced manufacturing and logistics

                        

Major participants and their strategic roles

  • United States: Technology leadership, AI, chip design

  • Japan: Advanced manufacturing, materials

  • Australia: Leading lithium exporter, rich REE reserves

  • Netherlands: Home to ASML, crucial for advanced chip lithography

  • South Korea: Global leader in memory chip manufacturing

  • Singapore: Long-standing semiconductor manufacturing hub

  • Israel: Strength in AI software, defence tech, cybersecurity

  • United Kingdom: Third-largest AI market, strong innovation ecosystem

  • Qatar and UAE: Large sovereign investment funds, AI ecosystem development

Observers (potential future members):

  • Canada

  • European Union

  • OECD

  • Taiwan

Strategic logic: countering China

  • China dominates:

    • REE mining

    • Processing

    • Downstream manufacturing

  • Use of REEs as geopolitical leverage:

    • Export suspensions in response to U.S. tariff actions under Donald Trump

  • Impact on India:

    • Disruption in rare-earth magnet imports

    • Adverse effects on automobile and electronics industries

    • Restoration only after compliance with strict Chinese licensing and end-use conditions

  • COVID-19 pandemic further exposed risks of single-country supply chain dependence.

India’s prior supply chain initiatives

  • Supply Chain Resilience Initiative (2021):

    • India, Australia, Japan

  • Quad Critical Minerals Initiative (2025) under the Quadrilateral Security Dialogue

  • Despite participation in similar frameworks:

    • India was not invited initially to Pax Silica

    • On January 12, U.S. Ambassador Sergio Gor indicated India would soon be invited

What India brings to Pax Silica

  • Strong digital public infrastructure

  • Rapidly expanding AI market

  • Long-standing India–U.S. technology collaboration

  • Government initiatives:

    • AI Mission

    • Semiconductor Mission (with substantial financial outlays)

  • Industry participation:

    • Tata group investments in semiconductors

    • U.S. firm Micron’s investments in India

  • Growing AI start-up ecosystem

  • Human capital advantage:

    • Large number of Indian students in U.S. STEM programmes

    • Potential return migration due to restrictive U.S. visa policies

    • Creation of a highly skilled domestic talent pool

Key challenges for India

  1. Status asymmetry

    • First developing country in Pax Silica

    • First non-ally (strategic partner) of the U.S. in the grouping

  2. Expectation gap

    • Differences in threat perception and security responses

    • India’s nuanced positions may differ from U.S. allies

  3. Strategic autonomy

    • India wary of policy constraints imposed by alliance structures

  4. Domestic policy space

    • India likely to:

      • Protect nascent AI and semiconductor ecosystems

      • Use subsidies, government procurement, and calibrated imports

    • Potential friction with Pax Silica members, especially the U.S.

The road ahead

  • China continues to:

    • Tighten export controls on REEs

    • Show limited sensitivity to needs of emerging economies

  • Likely future scenario:

    • Two parallel REE supply chains:

      • China-led

      • Pax Silica-led

  • Given historical IT collaboration with Western economies:

    • India may gravitate towards Pax Silica

  • However:

    • Strained India–U.S. economic relations

    • Need for deeper consultations before formal alignment

Prelims Practice MCQs

Q. The Pax Silica initiative primarily aims to:

A. Promote free global trade in agricultural goods
B. Build and secure global technology, AI, and semiconductor supply chains
C. Create a shared military alliance
D. Reduce carbon emissions through climate finance

Correct answer: B

Explanation:
Pax Silica is focused on securing supply chains for silicon, semiconductors, AI infrastructure, and related critical technologies.



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