Syllabus: GS3/ Economy; Science & Technology
Context
- Recently, the United States convened the inaugural Pax Silica Summit, emphasizing reducing coercive dependencies, securing the flow of critical minerals, and promoting trusted digital ecosystems.
About ‘Pax Silica’
- The term ‘Pax Silica’ derived from Latin ‘Pax’ (peace) and ‘Silica’ (a core compound in semiconductors).
- It symbolizes the pursuit of technological peace and prosperity through resilient, transparent, and cooperative supply chains.
Need for ‘Pax Silica’
- Supply Chain Security: To ensure reliable and diversified access to Rare Earth Elements (REEs) and critical minerals essential for semiconductors and AI technologies.
- Reducing Dependence on China: To counter China’s dominance and coercive control over global REE supply chains and technology exports.
- Resilient Technology Ecosystem: To build resilient, transparent, and trusted global supply chains for frontier technologies like AI and semiconductors.
- Economic Stability and Strategic Balance: To safeguard the global economy from disruptions caused by monopolized production or geopolitical tensions.
- Allied Technological Collaboration: To bring together technological powerhouses (US, Japan, South Korea, Netherlands, Israel) and resource-rich nations (Australia, UAE, Qatar) for joint innovation.
- Building Trusted Digital Infrastructure: To establish ethical AI frameworks, cybersecurity standards, and secure semiconductor ecosystems among like-minded nations.
- Encouraging Sustainable Mining and Innovation: To promote responsible extraction, recycling, and green manufacturing of critical minerals.
- Maintaining U.S. Technological Leadership: To reaffirm the US’s leadership in global innovation governance and ensure technological primacy in the emerging AI–semiconductor era.
Composition of Pax Silica
- United States and Japan: Innovation and R&D giants in semiconductors and AI.
- Australia: Leading exporter of lithium and a key player in REE mining.
- Netherlands: Home to ASML, a global leader in advanced lithography systems.
- South Korea: Dominant in memory chip manufacturing.
- Singapore: Longstanding chip manufacturing base linked with U.S. firms.
- Israel: Specializing in AI software, cybersecurity, and defense technologies.
- United Kingdom: The world’s third-largest AI market with a vibrant innovation ecosystem.
- Qatar and UAE: Financial powerhouses investing heavily in AI and advanced technologies.
- Observers at the inaugural summit included Canada, the European Union, OECD, and Taiwan, all of whom may become members as the initiative evolves.
India’s Prospective Role in Pax Silica
- Expanding Digital Infrastructure: India’s fast-growing digital economy and AI adoption align with Pax Silica’s goals.
- Semiconductor Ambitions: Through India’s Semiconductor and AI Missions, the country is investing heavily in chip design and fabrication.
- Strategic Partnerships: Collaboration with Japan, Israel, Singapore, and the U.S. in chip manufacturing and R&D.
- Human Capital Advantage: India’s large pool of STEM graduates and returning AI engineers bolster its capacity to contribute to global innovation.
- Resilient Supply Chains: India’s experience with the Quad Critical Minerals Initiative makes it a natural partner for Pax Silica’s objectives.
Benefits For India
- Access to Advanced Technology: Greater opportunities for technology transfer and joint R&D.
- Investment and Industrial Growth: Attraction of global investments in AI and semiconductor sectors.
- Enhanced Global Standing: A role in shaping global tech governance alongside major economies.
- Supply Chain Security: Reduced vulnerability to REE export disruptions from China.
- Integration into Global Value Chains: Entry into advanced semiconductor and AI production networks.
Challenges For India
- Strategic Autonomy: Balancing its non-aligned foreign policy with participation in a US-led bloc.
- Economic Gap: India’s developing tech ecosystem lags behind established Pax Silica members.
- Policy Divergences: India’s subsidy- and protection-based industrial policy may conflict with the market-driven approaches of high-income members.
- Expectation Gap: As the first developing and non-U.S. ally member, India must manage differing expectations within the group.
Strategic Implications
- Dual Supply Chain Order: The world may evolve into two REE and technology ecosystems, one led by China, the other by Pax Silica.
- India’s Alignment Choice: India is likely to align with Pax Silica’s democratic and transparent framework, while maintaining strategic flexibility.
- Regional Stability: Pax Silica may foster technological cooperation and economic peace across the Indo-Pacific.
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