The US-led “Pax Silica” alliance excludes India due to its early-stage semiconductor ecosystem, limited advanced manufacturing and trade frictions. Though a short-term setback, it echoes India’s MSP trajectory. Ongoing initiatives like the India Semiconductor Mission and National Critical Mineral Mission aim to build capacity for future inclusion.
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Picture Courtesy: INDIAN EXPRESS
Context
The United States launched "Pax Silica" with key partners (excluding India) to secure global supply chains for semiconductors, critical minerals, and AI.
It is a strategic initiative led by the United States aimed at creating a secure and resilient global supply chain for the semiconductor and Artificial Intelligence (AI) industries.
It aims to build a "secure, prosperous, and innovation-driven silicon supply chain" among trusted allies.
It is designed to counter China's dominance in critical minerals and technology manufacturing.
What are the Objectives of Pax Silica?
Reduce over Dependencies: To minimize reliance on any single country for essential materials and components, especially after China imposed restrictions on critical exports like rare earth magnets.
Secure AI Foundations: Protect the materials (like high-purity silicon) and capabilities (like advanced chip fabrication) that are fundamental to developing and deploying AI technologies.
Promote Allied Innovation: Ensure that aligned nations can collaboratively develop and scale transformative technologies without geopolitical disruptions.
Build Trusted Ecosystems: Create secure technology networks, including ICT systems, subsea fibre-optic cables, data centers, and foundational AI models.
The inaugural members of Pax Silica are nations with established, high-value roles in the global semiconductor supply chain. India was not included.
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Founding Members |
Key Contribution to Supply Chain |
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United States |
Leads in chip design (IP), electronic design automation (EDA) software, and manufacturing equipment. |
|
Japan |
Dominates in specialized materials like photoresists and silicon wafers. |
|
Republic of Korea |
Global leader in memory chip (DRAM, NAND) fabrication and a major player in logic chip manufacturing. |
|
Netherlands |
Home to ASML, which holds a monopoly on essential Extreme Ultraviolet (EUV) lithography machines for advanced chipmaking. |
|
United Kingdom |
Strong in semiconductor IP and design, notably through companies like Arm Holdings. |
|
Other Members |
Singapore, Israel, UAE, and Australia, each contributing in areas like R&D, fabrication, investment, and raw materials. |
India's exclusion is not a reflection of its strategic importance but rather its current position within the high-tech manufacturing supply chain. Key reasons include:
India often joins alliances later. For example, India wasn't a founding member of the US-led Minerals Security Partnership (MSP) but joined in 2023, this indicates that as India's domestic capabilities develop, inclusion in frameworks like Pax Silica is highly probable.
Source: INDIAN EXPRESS
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PRACTICE QUESTION Q. Critically analyze the factors contributing to India's exclusion from the inaugural 'Pax Silica' initiative. 150 words |
Pax Silica is a strategic initiative led by the United States with eight partner countries. Its core objective is to build a secure, stable, and innovation-driven global supply chain for semiconductors, critical minerals, and artificial intelligence (AI), thereby reducing dependence on countries like China.
India's exclusion is primarily due to three factors: its semiconductor manufacturing ecosystem is still in a nascent stage, it currently lacks the advanced technology and scale that the alliance focuses on, and unresolved frictions in the ongoing India-US trade deal negotiations.
The founding members are the United States, Japan, the Republic of Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia.
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