Why India joining the US alliance on AI tech is an opportunity for Australia
Why India joining the US alliance on AI tech is an opportunity for Australia
Publish Date: 2026-02-24 23:11:00
Source Domain: theconversation.com
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India Joins United States AI Supply Chain Alliance: India has officially joined the United States’ Pax Silica alliance—focused on AI supply chain security—signed at an AI summit in New Delhi.
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Pax Silica Aims to Reduce Reliance on China: The alliance seeks to bring together US allies to ensure diversified and resilient AI supply chains, countering China’s dominance in critical semiconductors.
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Taiwan’s Dominance: Taiwan’s TSMC produces 90% of the world’s advanced AI chips but still heavily depends on a network of global partners for ultra-pure materials.
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Australia’s Role and Limitations: Australia possesses rich rare earths deposits but lacks the capability to refine them into semiconductor-grade purity levels, making it dependent on China for processing.
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India’s Potential: India has the specialized chemicals and rare earth processing facilities needed to refine raw materials; however, it lacks semiconductor-grade refinement capabilities which it needs to develop in collaboration with US and Japanese members.
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Strategic Importance: A successful semiconductor minerals pipeline cooperation between Australia and India, backed by Pax Silica, could lead to a more diversified and secure global tech supply chain, impacting consumer products and economic security globally.
