Why in the News?
On 12 December 2025, the United States convened the inaugural Pax Silica Summit to secure Rare Earth Elements (REEs) and strengthen semiconductor and AI supply chains amid rising geopolitical competition.
What is Pax Silica?
- A strategic initiative to secure supply chains for semiconductors, AI, and critical minerals
- Pax means peace and Silica refers to a key material in chip manufacturing
- Aims to promote peace, prosperity, and trusted digital infrastructure
Current Status of India
- India not invited to inaugural summit
- US Ambassador Sergio Gor announced India will be invited soon
Why did the U.S. launch Pax Silica amid changing geopolitical realities?
- Strategic Dependence: The U.S. sought to reduce over reliance on China for Rare Earth Elements and critical inputs essential for advanced technologies and defence. Eg China suspended REE exports to the U.S. during tariff escalations, revealing supply chain vulnerabilities.
- Weaponisation of Trade: Critical minerals and technologies are increasingly used as tools of geopolitical coercion rather than neutral market goods. Eg China imposed strict licensing and end use restrictions on rare earth magnet exports to India, including bans on defence use.
- Tech National Security: Semiconductors and AI are now core to economic strength, military capability, and strategic dominance. Eg Shortages of advanced chips during the COVID period disrupted U.S. defence production and AI driven industries.
- Supply Chain Resilience: The U.S. aims to shift from cost efficiency driven globalisation to resilience driven and trusted supply chains. Eg Pax Silica links Australia’s lithium resources, Japan’s manufacturing strength, and the Netherlands’ lithography technology.
What value can India add to Pax Silica despite ecosystem gaps?
- Human Capital: India contributes a large, skilled workforce, strong STEM education base, and growing AI and semiconductor talent, which can support scaling of advanced technologies. Eg Return of U.S. trained Indian engineers due to visa constraints is strengthening India’s domestic AI and chip ecosystem.
- Market Scale: India offers a fast growing digital economy, large consumer base, and rising AI adoption, making it a critical demand centre for next generation technologies. Â
- Trusted Partnerships: India has proven technology collaboration capacity, supply chain integration experience, and status as a strategic partner rather than a coercive actor. Eg Micron’s semiconductor investment in India and Tata Group’s entry into chip manufacturing demonstrate trusted industrial cooperation.
How might Pax Silica affect India’s strategic autonomy and policy space?
- Strategic Autonomy: Joining Pax Silica may increase pressure on India to align more closely with U.S. and its allies, even when India prefers to take independent positions. Eg India may choose not to fully support strict security or sanction policies that do not suit its national interests.
- Policy Freedom: India will want to keep the freedom to support its own industries through subsidies and government support, which some Pax Silica countries may question. Eg India may continue giving financial support to local chip companies under the Semiconductor Mission, even if partners prefer open markets.
- Regulatory Control: Common rules under Pax Silica could limit India’s flexibility to work with other countries outside the group.
Way forward:
- Calibrated Engagement: India should participate selectively and pragmatically, focusing on technology access and supply chain resilience while avoiding rigid security commitments.
- Protect Policy Space: India must clearly defend its right to support domestic industries through subsidies, procurement, and phased localisation. Eg Continue incentives under the India Semiconductor Mission while aligning gradually with global standards.
- Leverage Multi Alignment: India should use Pax Silica to diversify supply chains, not replace existing partnerships, maintaining strategic balance.
| [2012] Recently there has been a concern over the short supply of a group of elements called rare earth metals. Why?Â
1. China, which is the largest producer of these elements, has imposed some restrictions on their export. 2. Other than China, Australia, Canada, Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is growing demand for these elements. Select the correct answer using the code given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 |
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