Synopsis
India is keen on getting access to the US State Department's new $250 million Pax Silica seed fund designed to secure global supply chains for artificial intelligence, semiconductors and critical minerals, people in the know said. This was discussed among steps to operationalise the multilateral initiative during foreign secretary Vikram Misri's three-day visit to Washington DC last week, they said.Listen to this article in summarized format
This was discussed among steps to operationalise the multilateral initiative during foreign secretary Vikram Misri's three-day visit to Washington DC last week, they said.
Designed as a foreign assistance support, the fund is hoped to catalyse trusted capital from large sovereign wealth and private sources controlling more than $1 trillion in assets, according to the US.
"The fund's participation in upcoming semiconductor projects and adjacent projects in India will ensure greater convergence on the official semiconductor aspirations of both nations. It will also allow made in India semiconductor products to become part of the new trusted regime of nations being stitched under the coalition. India recognises that," a person in the know said.
The fund is aimed at supporting critical mineral extraction and processing, critical infrastructure, and manufacturing assets globally belonging to Pax Silica's leading private sector partners and sovereign signatories. Talks explored the fund potentially partnering with multiple semiconductor projects in India in which US firms have interest, the people ET spoke with indicated.
Misri met with US undersecretary of state for economic affairs Jacob S Helberg, who played a central role in designing and implementing Pax Silica.
US-based Micron Technology's Rs 22,000 crore large-scale semiconductor assembly and test facility in Gujarat's Sanand began commercial production in February, while a subsidiary of New Mexico's 3D Glass Solutions Inc is investing Rs 1,943 crore to establish an advanced semiconductor packaging and 3D glass substrate manufacturing unit in Bhubaneswar, Odisha. Also, each of the 10 approved units under the first phase of the India Semiconductor Mission relies on US-made fabrication equipment from Applied Materials and Lam Research.
While Misri's visit focussed on a broad gamut of issues, it saw both sides affirm tighter economic and technology engagements, including in AI and critical minerals. Specifically, it saw talks on ways for the two nations to increase cooperation on the American AI exports programme’s national champions, which would incorporate partner nations’ leading AI companies into their customised American AI export stacks, sources said. The initiative was announced by the US on the sidelines of the India AI Impact Summit.
The Donald Trump administration has backed the global Pax Silica initiative to reduce over-concentration in global supply chains, prevent economic coercion and ensure that emerging technologies are developed and governed by democratic societies.
Member nations have committed to jointly addressing opportunities and vulnerabilities in semiconductor design, fabrication and packaging, logistics and transportation, compute, and energy grids and power generation. Japan, South Korea, Singapore, the UK, Israel, Australia and Greece signed the declaration at the Pax Silica Summit in Washington DC on December 12. In the following days, the Netherlands, UAE and Qatar joined the grouping.
India joined the grouping on the sidelines of the India AI Impact Summit held here in February.
