From Exclusion to Inclusion: India Secures Spot in Global Semiconductor Pact

The impact of India’s inclusion in Pax Silica will be most pronounced on the pockets of consumers. In this regard, Union Minister Ashwini Vaishnav said that the artificially inflated prices of chips will be addressed with the inclusion of India in Pax Silica. He stated that the supply of these minerals will be ensured, thus reducing the cost of production of chips. This will be beneficial for smartphones, laptops, and electric vehicles.

The US did not consider India while forming the Pax Silica alliance. The experts had reasons to believe that the semiconductor industry in India was still in its nascent stage. However, the rapid developments and establishment of 10 semiconductor plants (FABS) and mastering the technology to design 2-nanometer chips within the last two years have forced other countries to change their strategy, including the US. US Ambassador Sergio Gor acknowledged this, stating that global supply chain security is incomplete without India’s engineering talent. India’s inclusion in this group ensures that the country will not have to depend on China for raw materials.

Union Minister of Electronics and Information Technology Ashwini Vaishnav stated unequivocally that India and the United States’ coming together on this declaration sends a message to the world that we reject attempts to weaponize the supply chain. He said, “The 20th century was about oil and steel, but the 21st century is about silicon and rare minerals. This emerging ecosystem will require 1 million skilled professionals in the future, and this entire workforce will come from India.” He described this as the biggest victory for a self-reliant India.

US Deputy Secretary of State Jacob Hellberg described India’s participation as a strategic necessity. India now stands shoulder to shoulder with developed countries like Australia, Japan, South Korea, and the UK in this alliance.

This is a global strategic alliance aimed at securing the supply chain for AI and semiconductors. The Latin word “PAX” means peace, and silica is the basis of chips.

India has the world’s largest population of talented young people. India’s rise to a leadership role after initially being overlooked demonstrates that the world needs both India’s land and brainpower for chip production. With a secure supply of minerals, India will become a global hub not only for design but also for large-scale production.