US Launches 'Pax Silica' Alliance to Shield AI and Chip Supply Chains
New initiative with eight partner nations aims to counter geopolitical coercion and secure the flow of critical minerals and semiconductors for a new economic era.
The United States has formally launched a new international coalition aimed at securing the global supply chain for artificial intelligence, semiconductors, and critical minerals, a move designed to reduce geopolitical vulnerabilities and bolster technological innovation among allied nations.
The initiative, dubbed "Pax Silica"—or "Peace of Silicon"—unites the U.S. with eight partner countries: Australia, Japan, the Republic of Korea, Singapore, the Netherlands, Israel, the United Arab Emirates, and the United Kingdom. The alliance was unveiled following an inaugural summit in Washington, D.C., and includes Taiwan, the European Union, Canada, and the OECD as guest contributors.
The alliance's stated purpose is to build a more resilient and diversified technology ecosystem, from the mining of raw materials to the complex fabrication and packaging of advanced semiconductors. According to a statement from the U.S. State Department, the initiative aims to 'reduce coercive dependencies' and 'protect the materials and capabilities essential for artificial intelligence.'
This strategic pact is widely seen as a direct response to global supply chain disruptions exposed during the COVID-19 pandemic and escalating technological competition with China. By creating a formal network of 'trusted partners,' Washington aims to build redundancy and mitigate risks posed by over-reliance on any single country, particularly for critical minerals and downstream chip assembly and packaging, areas where China holds significant market share.
The timing of the initiative follows significant domestic investment by the U.S. through the CHIPS and Science Act, which provides billions in subsidies for domestic semiconductor manufacturing. 'Pax Silica' extends this strategy globally, creating a framework for international cooperation that complements domestic policy.
Member nations have committed to addressing vulnerabilities and pursuing opportunities across several key domains, including semiconductor design and fabrication, logistics, compute infrastructure, and power generation for energy-intensive AI data centers. The framework encourages new joint ventures and strategic co-investments, while also focusing on protecting sensitive technologies and critical infrastructure from access by countries of concern.
For the semiconductor and AI industries, the initiative signals a long-term strategic alignment that could reshape global investment and trade flows. Companies operating within the ten-nation bloc may benefit from more coordinated policies, shared research and development efforts, and smoother cross-border operations. The focus on the entire value chain—from minerals to AI models—underscores a new economic security paradigm where a secure and trusted technology infrastructure is viewed as essential to national and economic strength. Analysts suggest this could foster a new wave of investment in 'friend-shored' manufacturing and design facilities across the participating countries.