Source: The post “’Pax Silica’ Alliance and India” has been created, based on “What is ‘Pax Silica’ alliance that India joined and how does it matter?” published in “Deccan Herald” on 28th February 2026.
UPSC Syllabus: GS Paper-3-International Relations
News: India recently joined the Pax Silica, a US-led initiative aimed at securing critical minerals, semiconductor supply chains, and artificial intelligence ecosystems. The alliance was proposed by Jacob Helberg and was signed in the presence of Union Minister Ashwini Vaishnaw and US envoy Sergio Gor.
About Pax Silica
- Pax Silica is an international alliance formed in December 2025 to build cooperation in critical minerals and artificial intelligence supply chains.
- The name combines “Pax”, meaning peace and “Silica” referring to the mineral base of semiconductor chips.
- The alliance seeks to secure the entire production lifecycle from the extraction of critical minerals to semiconductor fabrication and the development of frontier AI models.
- It aims to build a trusted ecosystem of countries and companies that collaborate across mining, refining, manufacturing, software platforms, and AI systems.
- Members of the Alliance: The alliance includes Australia, Japan, South Korea, Singapore, the UK, Israel, UAE, Netherlands, Greece, Qatar, and India as signatory members.
- Canada, the European Union, Taiwan, and OECD participate as non-signatory members.
Importance of Pax Silica
- China dominates global rare earth production and processing and produces around 270,000 tonnes annually.
- China has previously restricted rare earth exports during trade tensions with the US, exposing vulnerabilities in global supply chains.
- Critical minerals are essential for electric vehicles, smartphones, data centres, defence equipment, and AI systems.
- Semiconductor shortages recently disrupted the automobile and electronics industries worldwide, including in India.
- Pax Silica aims to reduce overdependence on China and create diversified, resilient supply networks.
Importance of India Joining
- India’s entry signals renewed strategic convergence with the US and other partner nations.
- India holds approximately 8.52 million tonnes of rare earth reserves, which are among the largest globally, though production remains low.
- India has a fast-growing semiconductor design ecosystem.
- Around 10 semiconductor fabrication plants are established or under development, with initial production expected soon.
- India strengthens the alliance through its mineral reserves, growing market, and skilled human capital.
Benefits for India
- India will gain access to advanced semiconductor manufacturing equipment and global supply chain networks.
- India will benefit from GPU infrastructure and AI ecosystem collaboration.
- India will reduce dependence on China-dominated mineral and chip supply chains.
- The alliance complements India’s National Critical Mineral Mission.
- The alliance also strengthens the India Semiconductor Mission and accelerates domestic chip manufacturing.
Challenges
- India’s rare earth production remains significantly below its reserve potential due to technological and regulatory constraints.
- Establishing semiconductor fabrication plants requires high capital investment and advanced technological expertise.
- Overalignment with a US-led framework may complicate India’s strategic autonomy in dealing with China.
- Supply chain diversification may increase short-term production costs for industries.
- Geopolitical tensions between major powers could disrupt cooperation within the alliance.
Way Forward
- India should enhance domestic mining, refining, and processing capabilities for rare earth elements.
- India must invest in research and development to strengthen semiconductor manufacturing and AI capabilities.
- Public-private partnerships should be promoted to accelerate fabrication plant completion and technology transfer.
- India should balance strategic partnerships while maintaining its policy of strategic autonomy.
- Regulatory reforms should be introduced to streamline approvals in the mining and high-tech manufacturing sectors.
- Skill development initiatives should be expanded to create a workforce capable of handling advanced chip and AI technologies.
Conclusion: Pax Silica represents a strategic shift toward securing critical minerals, semiconductor supply chains, and AI ecosystems. India’s participation enhances its economic security, technological advancement, and global strategic position. Effective domestic reforms and careful geopolitical balancing will determine how fully India benefits from this alliance.
Question: Discuss the objectives and scope of the Pax Silica alliance. How does India’s participation strengthen both the alliance and India’s strategic interests?
Source: Deccan Herald
