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India-US sign Pax Silica declaration to secure chips, AI and critical minerals

February 20, 2026 4 min read International Relations Science & Technology Economics GS2 GS3
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What Happened

  • India signed the Pax Silica Declaration on February 20, 2026, becoming the 12th nation to join the US-led international coalition aimed at securing advanced technology supply chains.
  • The signing took place during the India AI Impact Summit in New Delhi, with Union Minister for Electronics and IT Ashwini Vaishnaw and US Under Secretary of State Jacob Helberg presiding over the ceremony, along with US Ambassador to India Sergio Gor.
  • Pax Silica is a US Department of State initiative launched in December 2025 to coordinate "trusted" supply chains across semiconductors, AI infrastructure, critical minerals, advanced manufacturing, and energy systems.
  • The coalition currently includes 12 members: the US, Australia, Japan, South Korea, the UK, Singapore, Israel, Qatar, the UAE, Greece, the Netherlands, and India.
  • The strategic pact specifically targets reducing dependency on China, which currently controls significant portions of the global semiconductor and critical mineral supply chains.

Static Topic Bridges

Critical Minerals and India's China Dependency

Critical minerals are essential raw materials for modern technology, defence, and clean energy systems. India currently imports approximately 93% of its rare earth requirements from China, making it strategically vulnerable to supply disruptions. In FY 2024-25, India imported nearly 54,000 tonnes of rare earth magnets worth approximately Rs 1,744 crore, with the overwhelming majority sourced from China.

  • India's rare earth imports nearly doubled from 28,700 tonnes in FY 2022-23 to over 53,700 tonnes in FY 2024-25.
  • The National Critical Mineral Mission (NCMM) was launched in 2024 with an outlay of Rs 16,300 crore for FY 2024-25 to 2030-31.
  • The Union Budget 2026-27 announced plans for rare earth corridors spanning Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
  • Current rare earth stockpiles may last only 2-3 weeks during a supply disruption.
  • India's defence systems like Tejas fighter jets and BrahMos missiles depend on rare earth elements for guidance systems, radar, and electronics.

Connection to this news: By joining Pax Silica, India gains access to a coordinated network of allied nations for diversifying its critical mineral supply chains away from China, directly addressing its 93% import dependency vulnerability.

India Semiconductor Mission

India launched the Semiconductor Mission to build a domestic chip manufacturing ecosystem, recognising that semiconductors are foundational to modern economies and national security. The original mission offered up to 50% fiscal support for setting up semiconductor fabrication, display manufacturing, and packaging units in India.

  • India Semiconductor Mission 2.0 was announced in the Union Budget 2026-27 with an outlay of Rs 8,000 crore.
  • India now has 10 approved semiconductor projects across six states, including its first commercial Silicon Carbide fab in Odisha.
  • Five semiconductor production units are currently under construction.
  • By 2029, India aims to design and manufacture chips for 70-75% of domestic applications.
  • The next phase targets advanced manufacturing capability at 3-nanometre and 2-nanometre technology nodes.

Connection to this news: Pax Silica membership complements India's domestic semiconductor ambitions by providing access to allied nations' technology, expertise, and supply chains across the full "silicon stack" from mineral extraction to chip fabrication.

The "Silicon Stack" and Technology Supply Chain Security

The "silicon stack" refers to the entire vertical supply chain required for advanced technology, spanning from critical mineral extraction and processing at the base through semiconductor fabrication, chip design, and AI infrastructure at the top. No single country currently controls the complete stack, creating strategic interdependencies and vulnerabilities.

  • The US leads in chip design (companies like Nvidia, Qualcomm) and advanced AI systems.
  • Taiwan (TSMC) dominates advanced semiconductor fabrication at cutting-edge nodes.
  • China controls approximately 60% of global rare earth mining and 90% of rare earth processing.
  • Japan and the Netherlands control key semiconductor manufacturing equipment (lithography machines).
  • Pax Silica aims to coordinate across all layers of this stack among allied nations to reduce "coercive dependencies."

Connection to this news: India is seen as a crucial node in Pax Silica due to its vast talent pool in chip design and software, its largely untapped mineral resources (beach sands with monazite in Kerala, Odisha, Tamil Nadu), and its growing fabrication capacity under the Semiconductor Mission.

Key Facts & Data

  • Pax Silica launched: December 2025 by the US Department of State.
  • Current signatories: 12 nations (India joined most recently on February 20, 2026).
  • India's rare earth import dependence on China: approximately 93%.
  • India Semiconductor Mission 2.0 outlay: Rs 8,000 crore.
  • 10 approved semiconductor projects across 6 Indian states.
  • National Critical Mineral Mission outlay: Rs 16,300 crore (FY 2024-25 to 2030-31).
  • India's rare earth imports: nearly 54,000 tonnes in FY 2024-25.