India Joins US-Led Pax Silica Alliance, Moves to the Centre of the Global AI and Chip Power Shift

India has formally joined Pax Silica, a US-led coalition designed to secure semiconductor, AI and critical-minerals supply chains, marking a significant geopolitical and technological shift. The move places India closer to the core of an emerging Western-aligned tech network built for the AI era.

The announcement came on the sidelines of the India AI Impact Summit and signals Washington’s growing confidence in India as a long-term supply-chain partner.

What Pax Silica Actually Is

Pax Silica is a US-driven framework aimed at building a “trusted network” across the semiconductor and AI ecosystem. Instead of concentrating critical capabilities in a single geography, the initiative distributes key functions among allied nations.

The strategy focuses on coordinating countries that control major chokepoints in the tech stack, including:

• Dutch lithography leadership
• Japanese semiconductor chemicals
• Middle Eastern energy and capital
• Advanced packaging and manufacturing partners

The broader goal is to reduce strategic dependence on China and other countries described by US policymakers as “non-market actors.”

Why India Was Invited

India signed the Pax Silica Declaration after receiving an invitation in January 2026, reflecting a clear shift in how global powers view the country.

For years, India was seen primarily as a large digital market. Now it is increasingly viewed as a supply-chain resilience partner.

Analysts point to several factors behind the invitation:

1. Four years of aggressive semiconductor policy
2. Production subsidies and Semiconductor Mission incentives
3. Ease-of-doing-business reforms
4. Rapid growth in India’s electronics ecosystem

India also brings structural advantages that Pax Silica members value:

1. One of the world’s largest pools of chip design engineers
2. A fast-digitising domestic economy
3. Long-term potential for ATMP, legacy fabs and mineral processing
4. A large base of AI developers and services talent

Who Else Is in the Bloc

Pax Silica is expanding quickly.

Early signatories (December 2025)

• Japan
• Israel
• Australia
• Singapore
• South Korea

Later additions

• Greece
• Qatar
• United Arab Emirates
• United Kingdom

In addition, Canada, the European Union, the Netherlands, the OECD and Taiwan are participating as non-signatory members, aligning on policy and supply-chain coordination without full treaty commitments.

This structure gives Pax Silica both formal members and a broader policy orbit.

What India Stands to Gain

Membership is expected to unlock multiple near- and medium-term benefits.

Investment and infrastructure

1. Increased US-and-ally investment into Indian AI compute and data centres
2. Lower perceived risk for foreign investors in India’s semiconductor plans
3. Stronger support for ATMP and legacy fab projects under the Semiconductor Mission

Critical minerals security

India also gains deeper integration into secured supply chains for:

1. Lithium
2. Cobalt
3. Rare earth elements

This is particularly important for India’s ambitions in EVs, electronics manufacturing and energy transition technologies.

Near-term technical focus

Cooperation is likely to prioritise:

1. Chip design
2. Mature manufacturing nodes (28 nm and above)
3. Advanced packaging
4. Supply-chain security

Cutting-edge leading-edge fabs are not expected to be the immediate focus.

Strategic Trade-Offs India Must Manage

The membership is not without risks.

By joining Pax Silica, India is expected to move closer to Western export-control and investment-screening frameworks. That could create friction in several areas:

• Potential limits on supplying India-made tech to certain countries
• More scrutiny on cross-border tech flows
• Complications in managing ties with China and Russia

Perhaps most significantly, participation in a US-centric bloc could narrow India’s traditional multi-alignment strategy, where it has historically balanced relationships across geopolitical camps.

There may also be pressure to adopt US-aligned standards in AI and electronics rather than fully independent domestic frameworks.

Why This Moment Matters

India’s entry into Pax Silica signals a deeper structural shift in the global tech order.

Three trends are converging:

• AI is becoming infrastructure, not just software
• Semiconductor supply chains are being geopolitically reorganised
• Countries are being sorted into “trusted tech networks”

India is now positioning itself not just as a user of global technology, but as a core node in the supply chain of the AI age.

Bottom Line

India’s Pax Silica membership marks a strategic elevation in its global tech role. The move could unlock major investment, deepen semiconductor capabilities and strengthen AI infrastructure. But it also ties India more closely to a US-led technology bloc, introducing new geopolitical balancing challenges. How New Delhi manages the opportunities and constraints will shape its position in the AI economy for the next decade.