In a strategic move to deepen technology and supply chain partnerships, India is looking to tap into a new US-backed initiative aimed at strengthening global capabilities in artificial intelligence, semiconductors, and critical minerals.
Sources indicate that India has shown interest in accessing the $250 million Pax Silica seed fund, launched by the US State Department. The discussions took place during Foreign Secretary Vikram Misri’s 3-day visit to Washington DC last week, where both sides explored ways to operationalise the multilateral initiative.
The fund is designed as foreign assistance support and aims to mobilise trusted capital from sovereign wealth funds and private investors managing over $1 trillion in assets. It focuses on securing supply chains through investments in semiconductor projects, critical mineral extraction, infrastructure, and manufacturing.
“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 familiar with the matter said.
Talks also explored potential collaboration between the fund and semiconductor projects in India involving US firms. Misri held discussions with US Undersecretary of State for Economic Affairs Jacob S Helberg, who played a key role in developing Pax Silica.
India has already seen progress in semiconductor investments. A US-based firm’s Rs 22,000 crore assembly and test facility in Gujarat’s Sanand began operations in February, while another company is investing Rs 1,943 crore in a semiconductor packaging and 3D glass substrate unit in Bhubaneswar, Odisha. Additionally, all 10 approved units under the first phase of the India Semiconductor Mission rely on US-made fabrication equipment.
The visit also covered broader cooperation in AI, critical minerals, and participation in the American AI exports programme. This initiative aims to integrate partner nations’ leading AI firms into customised US technology stacks.
Backed by the Donald Trump administration, the Pax Silica initiative seeks to reduce global supply chain concentration, prevent economic coercion, and promote technology governance among democratic nations. Member countries have committed to strengthening collaboration across semiconductor design, fabrication, logistics, and energy systems.
Countries including Japan, South Korea, Singapore, the UK, Israel, Australia, Greece, the Netherlands, UAE, and Qatar have already joined the initiative, with India becoming part of the grouping earlier this year.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.