Global Economy and Technological Shifts
The global economy is characterized by persistent continuities, such as the North-South divide in income and resource use, along with significant transformations driven by new technologies like semiconductors and Artificial Intelligence (AI). These technologies are crucial for the future, leading to a focus on securing Rare Earth Elements (REEs) and advancing manufacturing processes related to these innovations.
Pax Silica Summit
- The Pax Silica Summit, initiated by the U.S. on December 12, 2025, aims to secure critical mineral supply chains and enhance manufacturing capabilities for semiconductors and AI.
- The term "Pax Silica" suggests promoting peace and prosperity through stable tech supply chains.
- The declaration emphasizes reducing dependencies, securing global tech/AI supply chains, and developing trusted digital infrastructure.
Membership and Participation
- Key members include the U.S., Japan, Australia, the Netherlands, South Korea, Singapore, Israel, and the UK.
- Observer participants included Canada, the EU, OECD, and Taiwan, with potential future membership.
Geopolitical Implications
- China's dominance in REE supply poses geopolitical challenges, influencing global supply flows and political outcomes.
- India faced disruptions in REE imports from China, affecting its automobile and electronics sectors.
- Initiatives like the Supply Chain Resilience Initiative and Quad Critical Minerals Initiative reflect efforts to diversify sources and strengthen supply chain resilience.
India's Role and Challenges
- India was not initially invited to Pax Silica but is expected to join, given the strong Indo-U.S. tech collaborations.
- India's growing digital infrastructure and AI market present opportunities, despite its nascent AI and semiconductor ecosystems compared to Pax Silica members.
- India is enhancing its capabilities through AI and Semiconductor Missions, investments by companies like Tata and Micron, and educational advancements.
- India's potential membership poses challenges as it will be the first developing, non-ally country in Pax Silica.
- India aims to maintain strategic autonomy and protect its nascent tech ecosystems through preferential policies, which may conflict with current U.S. policy directions.
Strategic Considerations
- Pax Silica’s emergence likely leads to two dominant REE supply chains, with India potentially aligning with Pax Silica due to historical tech collaborations.
- India seeks to understand Pax Silica's evolution, especially given strained economic relations with the U.S.
