India's formal entry into the US-led Pax Silica alliance marks a significant shift in global AI supply chain strategy. The declaration, signed during New Delhi's AI summit, positions India alongside Australia as a founding member in efforts to diversify semiconductor manufacturing and reduce dependency on Taiwan. Taiwan currently produces 90 percent of the world's most advanced AI chips, creating a critical vulnerability in the global technology ecosystem. China's dominance in rare-earth element refining compounds this risk. By expanding the alliance to include India, the US aims to build redundancy across chip design, manufacturing equipment, and material sourcing. India's growing semiconductor capabilities and Australia's strategic positioning offer pathways to strengthen supply chain resilience.
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