India joins U.S. ‘Pax Silica’ semiconductor alliance easing tariff and energy tensions |
India joins U.S. ‘Pax Silica’ semiconductor alliance easing tariff and energy tensions
India joined a U.S.-led initiative to strengthen technology cooperation among strategic allies in a move Friday that underscores the nations’ warming ties after a brief strain over New Delhi’s unabated purchase of discounted Russian oil.
The decision aligns India closely with Washington’s efforts to build secure supply chains for semiconductors, advanced manufacturing and critical technologies at a time geopolitical competition with China is intensifying. It also signals a reset in relations following friction over energy trade and tariffs.
Nations that have joined the Pax Silica framework include Japan, South Korea, the U.K. and Israel.
“Pax Silica will be a group of nations that believe technology should empower free people and free markets. India’s entry into Pax Silica isn’t just symbolic. It’s strategic, it’s essential,” U.S. Ambassador Sergio Gor said in a speech preceding the agreement signing.
Pax Silica is aimed at strengthening cooperation among partner countries on semiconductor design, fabrication, research and supply chain resilience. The initiative seeks to reduce dependence on China-dominated manufacturing hubs while promoting trusted production networks across democracies and strategic allies.
The development at the artificial intelligence summit in New Delhi comes weeks after India and the U.S. reached an interim trade framework to reduce tariffs and grant greater access to each other’s markets, easing tensions that had threatened to slow bilateral momentum.
President Donald Trump announced earlier this month that the U.S. would lower reciprocal import tariffs on India from 25% to 18% and also remove the additional 25% levy imposed earlier for buying Russian crude after Indian Prime Minister Narendra Modi agreed to stop it.
India had ramped up Russian oil imports after Moscow’s invasion of Ukraine in 2022, drawing criticism from western partners even as New Delhi defended the purchases as necessary to manage inflation and protect its consumers.
India’s entry into Pax Silica, combined with trade concessions, marks a strategic convergence that extends beyond commerce into long-term technology and security cooperation, reinforcing India’s role as a key U.S. partner in the Indo-Pacific.
“From the trade deal to Pax Silica to defense cooperation, the potential for our two nations to work together is truly limitless,” Gor said.
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