What Happened
- India formally joined the Pax Silica initiative, a US-led strategic alliance aimed at building secure, resilient supply chains for semiconductors, critical minerals, and AI infrastructure.
- The initiative was launched in December 2025 in Washington, D.C., with founding members including the US, Japan, South Korea, Singapore, the Netherlands, Israel, the UK, Australia, the UAE, and Qatar.
- India becomes the eleventh core member, reflecting its growing role in the global semiconductor and AI ecosystem.
- The alliance seeks to reduce dependence on coercive supply chains across the entire technology stack — from raw materials and power generation to chip fabrication, data centres, frontier AI models, and logistics networks.
Static Topic Bridges
Pax Silica Initiative — US-Led Technology Supply Chain Alliance (2025)
Pax Silica is the US Department of State's flagship economic security and technology initiative, launched on December 12, 2025, through the signing of a non-binding Pax Silica Declaration. The name draws on "silica" (the base material for silicon used in semiconductors) and "Pax" (a reference to a peace or order maintained by a dominant power). The initiative focuses on the entire AI and semiconductor supply chain — from critical minerals extraction, energy inputs, and advanced manufacturing to chip fabrication, data centres, and frontier AI models.
- Launched: December 12, 2025, in Washington, D.C.
- Founding signatories: US, Japan, South Korea, Singapore, Netherlands, Israel, UK, Australia, UAE, Qatar
- Observers/guests: Taiwan, EU, Canada, OECD
- Non-binding declaration — serves as a strategic coordination framework, not a treaty
- Coordinated by the US Under Secretary of State for Economic Affairs
Connection to this news: India's accession makes it the first major developing economy in Pax Silica, reflecting both its strategic importance as a source of critical minerals and its growing domestic semiconductor manufacturing capacity under the India Semiconductor Mission.
India Semiconductor Mission (ISM) — Domestic Chip Manufacturing Push
The India Semiconductor Mission was approved in 2021 with an outlay of Rs 76,000 crore to develop a sustainable semiconductor and display ecosystem. The mission provides fiscal support of up to 50% for silicon fabs, compound semiconductor facilities, assembly and testing units, and chip design. As of December 2025, 10 projects with a total investment of Rs 1.60 lakh crore have been approved across six states, including Tata Electronics' fab in Dholera, Gujarat.
- Approved: December 2021, outlay Rs 76,000 crore
- ISM 2.0 launched with enhanced focus on fabrication, packaging, and design
- 10 projects approved across 6 states as of December 2025, investment Rs 1.60 lakh crore
- Tata Electronics setting up India's first major semiconductor fab in Dholera, Gujarat
- ASML (Dutch) planning a support office in GIFT City for DUV lithography tools
Connection to this news: India's Pax Silica membership complements its domestic semiconductor push, positioning India as both a demand centre and a manufacturing node in the trusted global supply chain for chips and AI hardware.
Critical Minerals Policy — Strategic Resource Security
India released a list of 30 critical minerals in 2023, recognising minerals essential for economic development and national security whose supply chains are concentrated in a few geographies. The government amended the MMDR Act, 1957 through the MMDR Amendment Act, 2023, empowering the Central Government to auction critical and strategic mineral blocks. KABIL (Khanij Bidesh India Ltd.), a joint venture of NALCO, HCL, and MECL (stake 40:30:30), was created in 2019 to acquire overseas mineral assets.
- 30 critical minerals listed in 2023, including lithium, cobalt, gallium, germanium, REEs, silicon, tungsten
- MMDR Amendment Act, 2023 — inserted 24 critical/strategic minerals in Part D of Schedule I
- KABIL established 2019 — joint venture of NALCO (40%), HCL (30%), MECL (30%)
- India imports 100% of its lithium and cobalt requirements
- National Critical Mineral Mission announced in Union Budget 2024-25
Connection to this news: Pax Silica's core objective is to secure supply chains for critical minerals used in semiconductors and AI infrastructure — directly aligning with India's own critical minerals policy and KABIL's overseas acquisition mandate.
Key Facts & Data
- Pax Silica launched: December 12, 2025, in Washington, D.C.
- India is the 11th core member of Pax Silica
- India Semiconductor Mission outlay: Rs 76,000 crore (2021)
- 10 semiconductor projects approved in India with Rs 1.60 lakh crore investment
- India's critical minerals list: 30 minerals (2023)
- KABIL established: 2019 (NALCO 40%, HCL 30%, MECL 30%)
- MMDR Amendment Act: 2023 — enabled auction of critical mineral blocks