What Happened
- India signed a declaration to join Pax Silica, a US-led global initiative aimed at securing supply chains for artificial intelligence, semiconductors, critical minerals, and advanced technologies.
- The declaration was signed at the India AI Impact Summit held in Delhi on February 20, 2026, making India the 11th member of the coalition.
- The name Pax Silica combines "Pax" (Latin for peace) and "Silica" (the compound refined into silicon, the material central to semiconductor chips).
- Union Minister for Electronics and IT Ashwini Vaishnaw stated that the initiative would greatly benefit India's electronics and semiconductor industry.
- US Ambassador to India Sergio Gor described India's joining as "strategic and essential," not merely symbolic.
Static Topic Bridges
Pax Silica — Origins, Structure, and Membership
Pax Silica is a US-led multilateral initiative launched to build resilient and trusted supply chains for critical technologies including semiconductors, AI infrastructure, critical minerals, energy, manufacturing systems, and logistics networks. It was inaugurated at a summit in Washington on December 12, 2025, with seven original signatories.
- Original 7 signatories (December 2025): United States, Australia, Japan, South Korea, United Kingdom, Singapore, Israel
- Expanded to include Qatar, UAE, and Greece (January 2026), followed by India (February 2026) — total 11 members
- Focus areas: Semiconductors, AI chips, critical minerals, energy supply chains, manufacturing systems, logistics
- Not a formal treaty but a political declaration of intent to coordinate supply chain policies among trusted partners
- Modelled on the "friend-shoring" approach — building supply chains among geopolitically aligned democracies
Connection to this news: India's entry makes it the largest economy by population to join the coalition and gives the US its most significant partner in the Indo-Pacific for diversifying semiconductor supply chains away from China and Taiwan.
India Semiconductor Mission (ISM) 2.0
The India Semiconductor Mission was launched in December 2021 under the Ministry of Electronics and IT to develop a semiconductor and display manufacturing ecosystem in India. ISM 2.0, announced in the Union Budget 2025-26, expands the scope to include advanced manufacturing, equipment, and materials.
- ISM 2.0 budget allocation: Rs 1,000 crore for FY 2026-27; total programme outlay of Rs 8,000 crore under the Modified Programme for Semiconductor and Display Manufacturing Ecosystem
- 10 projects approved with total investment of Rs 1.60 lakh crore across 6 states (as of December 2025)
- Projects include silicon fabrication units, silicon carbide fabs, advanced and memory packaging facilities, and assembly and testing infrastructure
- ISM 2.0 focus: Semiconductor equipment and materials production, full-stack Indian semiconductor IP, and domestic and global supply chain fortification
- Target: Achieve 3-nanometre and 2-nanometre technology nodes; aim to be among top semiconductor nations by 2035
Connection to this news: Joining Pax Silica complements India's domestic semiconductor ambitions under ISM 2.0 by providing access to trusted supply chains for critical inputs — equipment, materials, and IP — that India cannot develop entirely independently in the near term.
Critical Minerals — Strategic Importance and India's Policy
Critical minerals are minerals essential for modern technology, defence, and clean energy applications but subject to supply chain concentration risks. India announced its first Critical Minerals Strategy in 2023 and established KABIL (Khanij Bidesh India Limited) in 2019 as a joint venture to secure overseas mineral assets.
- India's critical minerals list: 30 minerals including lithium, cobalt, nickel, rare earth elements, gallium, germanium, tungsten
- KABIL: Joint venture of NALCO, HCL, and MECL; signed agreements with Australia and Argentina for lithium and cobalt
- China controls approximately 60% of global critical mineral processing and 80% of rare earth refining
- Mines and Minerals (Development and Regulation) Amendment Act, 2023: Introduced a separate list of 24 critical and strategic minerals for auction
- Union Budget 2023-24: Full exemption of customs duty on lithium-ion battery cell imports
Connection to this news: Pax Silica's focus on critical mineral supply chains directly addresses India's vulnerability in sourcing minerals like gallium, germanium, and rare earths needed for semiconductor manufacturing, complementing KABIL's bilateral sourcing strategy with a multilateral framework.
Key Facts & Data
- Pax Silica members: 11 (including India, joined February 20, 2026)
- Original summit: Washington, December 12, 2025
- India Semiconductor Mission 2.0 budget: Rs 1,000 crore (FY 2026-27)
- Approved semiconductor projects: 10 projects, Rs 1.60 lakh crore investment, across 6 states
- India's critical minerals list: 30 minerals
- China's share of global rare earth refining: approximately 80%
- Global semiconductor market size: estimated at over $600 billion (2025)