Amid growing trade tensions between India and the US, the North American country is set to invite India to join its AI and supply chain security alliance, Pax Silica.
“New Delhi will be invited to the table as we operationalise Pax Silica. India’s pending entry into Pax Silica marks a decisive shift toward reliable and secure supply chains. A historic milestone for the US-India partnership. The work to harden our supply chains and secure our economic future starts now,” said Jacob Helberg, US under secretary of state, in a post on X.
For context, Pax Silica is a multilateral initiative launched by the US last month to secure supply chains for silicon, semiconductors, AI and related digital infrastructure.
It aims to reduce “coercive” dependencies, protect materials and capabilities foundational to AI, and ensure aligned nations can develop and deploy transformative technologies at scale, as per the US state department.
The initiative is focussed on producing high-purity silica, a foundational raw material required for semiconductor manufacturing. It is pertinent to note that AI chips require ultra-clean silicon wafers derived from high-grade silica to ensure performance at smaller nanometre nodes.
As AI workloads scale rapidly, demand for GPUs, accelerators and data centre chips is surging. This has tightened global supply chains for semiconductor-grade materials. With the new initiative, the US aims to secure the supplies of these raw materials and reduce dependence on China.
India’s entry into the bloc comes a month after the inaugural Pax Silica Summit was held on December 12. The event convened stakeholders from Japan, Republic of Korea, Singapore, the Netherlands, The United Kingdom, Israel, United Arab Emirates, and Australia, alongside guest contributions from Taiwan, the European Union, Canada, and the OECD.
Participating nations signed a non-binding declaration committing to deepen cooperation on supply chain resilience, protect core capabilities foundational to AI, pursue joint ventures and reduce dependencies that could weaken their respective economic and national security.
While the Indian government’s response remains to be seen, the announcement comes at a time when the bilateral ties between the two nations are under strain. A primary factor contributing to the tensions is the long impending trade deal that the two nations are yet to find a headway on.
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