US Positions India as ‘Highly Strategic Partner’ in AI, Semiconductor Supply Chains: US Official

By R Anil Kumar

Washington DC. The United States has positioned India as a “highly strategic partner” in safeguarding global supply chains for artificial intelligence and semiconductors, according to a senior American official.

This stance comes amid efforts to bolster bilateral cooperation on economic security.

Jacob Helberg, the US Under Secretary of State for Economic Affairs, made these remarks while addressing India’s absence from the recent Pax Silica Summit in Washington.

Helberg announced his intention to attend the India AI Impact Summit in Delhi in February. He described this as an opportunity to forge “tangible milestones” in US-India collaboration. The virtual briefing followed the Pax Silica Summit, where technologically advanced economies convened to align strategies on AI infrastructure and semiconductor supply chains.

Responding to queries on India’s non-participation, Helberg clarified that trade discussions remain a “completely separate and parallel track” from supply chain security talks. He dismissed any notion of exclusion due to diplomatic tensions, emphasising that the two nations maintain daily communication. India, he noted, engages through bilateral channels rather than the multilateral format of the summit.

“We view India as a highly strategic potential partner on supply chain security-related efforts,” Helberg stated. He underscored Washington’s eagerness to deepen ties swiftly. The February summit, he added, promises substantial advancements in bilateral economic security arrangements.

The Pax Silica initiative, unveiled at the December summit, marks a pivotal shift in US economic policy. Organisers frame it as prioritising national security over conventional trade dynamics. It rests on four core pillars: rebalancing trade relationships, stabilising conflict zones economically, reindustrialising America, and fortifying supply chains against vulnerabilities.

Silicon and semiconductors form the “lifeblood” of contemporary technology, Helberg asserted. The initiative targets coordinated investments in fabrication plants, data centres, and mineral refining among allies. This approach seeks to mitigate risks in critical sectors from electric vehicle batteries to defence electronics.

Participants at the inaugural summit included Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia. Taiwan, the European Union, Canada, and the OECD also contributed, despite Taiwan’s distinctive diplomatic position. These nations dominate the global semiconductor ecosystem, hosting giants such as Samsung, TSMC, ASML, and SK Hynix.

Japan holds a foundational role, with the Pax Silica concept originating from US-Japan bilateral dialogues. The gathering reflects a concerted push to anchor supply chain resilience. Analysts observe that India might integrate into future phases, mirroring its trajectory with the Minerals Security Partnership.

Launched in 2022, the Minerals Security Partnership initially advanced without India. New Delhi joined in June 2023, alongside Japan, Australia, and the European Union. The MSP targets critical minerals like lithium, cobalt, and rare earth elements, countering China’s dominance in rare earth processing, which commands 60-70 per cent of global capacity.

Pax Silica extends this logic to technology supply chains, aiming to diminish reliance on China. It treats supply chain frailties as existential national security imperatives, not mere commercial issues. Washington’s intensified focus aligns with broader geopolitical realignments.

For India, this development holds strategic resonance, particularly given its burgeoning role in semiconductors and AI. Initiatives like the India Semiconductor Mission and growing ties with US firms position New Delhi advantageously. Helberg’s Delhi visit could accelerate joint ventures in fabrication and AI infrastructure.

Bilateral momentum builds on prior successes, such as iCET and defence technology pacts. Yet challenges persist, including regulatory alignment and investment scaling. The February summit offers a platform to address these, potentially yielding memoranda on joint fab plants or AI ethics frameworks.

Observers anticipate Pax Silica’s expansion to encompass India, enhancing collective resilience. This partnership could redefine Indo-US economic security dynamics, fostering indigenisation while countering adversarial influences. Helberg’s engagement signals Washington’s commitment to New Delhi as an indispensable ally in the silicon age.