
A senior US official has affirmed that India remains a "crucial potential partner" in securing global AI and semiconductor supply chains, downplaying claims that political friction caused India’s absence from a recent Washington summit.
Jacob Helberg, the US Under Secretary of State for Economic Affairs, announced his upcoming attendance at the India AI Impact Summit in February. The visit underscores Washington's commitment to deepening ties with New Delhi on critical "economic security matters."
Addressing India’s absence from the Pax Silica Summit—a gathering of technologically advanced nations focused on AI infrastructure—Helberg dismissed suggestions of a diplomatic rift, emphasizing instead the long-term strategic collaboration between the two nations.
"I want to be clear that the conversations between the United States and India pertaining to trade arrangements are a completely separate and parallel track to our discussions on supply chain security," Helberg said. "We are not conflating those two things."
He emphasised that India was not "excluded" from the summit due to diplomatic friction, but is currently engaged through bilateral discussions rather than the multilateral framework.
"We view India as a highly strategic potential partner on supply chain security-related efforts, and we welcome the opportunity to engage with them," he added, noting that officials from both countries remain in daily communication.
The Under Secretary said his attendance at February's Delhi summit would provide an opportunity to establish "tangible milestones" for US-India cooperation.
"We are actively determining ways of actually deepening that collaboration quickly," Helberg said, adding that the event would yield substantial developments in bilateral economic security arrangements.
The Pax Silica initiative, launched at the December summit, signals a transformative shift in U.S. economic policy by prioritizing national security over traditional trade interests.
This strategic framework is built upon four core objectives: rebalancing global trade, leveraging economic tools to stabilize conflict zones, revitalizing American industry, and fortifying supply chains.
Under Secretary Helberg described semiconductors as the "lifeblood" of the modern era. Consequently, the initiative seeks to align allied nations in a coordinated effort to invest in semiconductor fabrication, data center infrastructure, and critical mineral refining.
The inaugural summit convened partners from Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates and Australia, with additional participation from Taiwan, the European Union, Canada and the OECD.
These countries collectively anchor the global semiconductor supply chain, home to firms including Samsung, TSMC, ASML, and SK Hynix. Japan is considered foundational to the effort, with the Pax Silica concept emerging from bilateral US-Japan discussions.
Taiwan participated despite its unique diplomatic status, reflecting its dominance in semiconductor manufacturing.Observers note India could join the initiative at a subsequent stage, following a pattern established by the Minerals Security Partnership.
The US-led Minerals Security Partnership (MSP), established in 2022 to safeguard critical mineral supply chains, initially launched without India. However, New Delhi joined the coalition—which includes Japan, Australia and the EU—in June 2023.
The MSP targets essential materials like lithium, cobalt, and rare earth elements, a move largely seen as a strategic counter to China’s dominance, as Beijing currently controls 60–70% of global processing capacity.
Building on this, the Pax Silica initiative seeks to diminish reliance on China across the broader tech ecosystem, from defense electronics to electric vehicle batteries. This shift reflects a new era in Washington, where supply chain vulnerabilities are no longer viewed as mere commercial risks, but as urgent matters of national survival.
Source: ANI




