New Delhi [India], March 27 (ANI): The United States Department of State launched a new USD 250 million Pax Silica Fund initiative, designed to reinforce the security and reliability of global semiconductor supply chains.

According to an official statement on Thursday by the United States Government, 'The U.S. Department of State today announced that it intends, working with Congress, to allocate $250 million in foreign assistance funding for a new Pax Silica Fund initiative to support critical minerals extraction, processing, critical infrastructure, and manufacturing assets that support secure and reliable semiconductor supply chains.'

The program intends to utilize foreign assistance funding to bolster the extraction and processing of critical minerals, as well as the manufacturing assets and infrastructure required to sustain the technology sector.

Under Secretary of State for Economic Affairs Jacob S. Helberg also confirmed the initiative on Thursday, stating that the administration is currently working with Congress to finalize the allocation. 'The United States remains the partner of choice for Pax Silica signatories committed to securing strategic layers of the global technology supply chain,' Helberg stated.

He further explained that the announcement represents a commitment to real engagement through strategic partnerships and joint actions. The fund intends to support projects that specifically target the industrial and logistical requirements of the semiconductor industry. The fund also focuses on securing strategic layers of the technology supply chain by fostering industrial capacity and logistics.

The initiative seeks to move beyond traditional aid by catalyzing capital from significant private and sovereign wealth sources. 'We expect that this fund will help to catalyze trusted capital from large sovereign wealth and private sources which on average control more than USD 1 trillion in assets to build greater investments in supply chain security,' the statement said.

The Pax Silica Fund also serves as a primary vehicle for advancing the America First assistance agenda. It incorporates the 'Trade Not Aid' objective established by Secretary Rubio, shifting the focus toward leveraging private sector partnerships and sovereign signatories to invest in emerging technologies. This strategy uses foreign assistance as a tool to attract co-investment from allies and private entities, ensuring that the supply chain remains resilient against global disruptions.

'With today's announcement, we're backing that commitment with real engagement to advance Pax Silica through strategic partnerships, joint action, and projects focused on industrial capacity and logistics,' Helberg said.

The State Department emphasized that 'Pax Silica brings strategic partnerships and coordinated action across every layer of the supply chain. Today's announcement demonstrates the United States' commitment to supporting that approach with concrete mechanisms to drive meaningful progress.'

Pax Silica is a US-led strategic initiative to build a secure, prosperous, and innovation-driven silicon supply chain, formed with a declaration signed by partnering countries such as Australia, Greece, India, Israel, Japan, Qatar, Republic of Korea, Singapore, Sweden, United Arab Emirates and United Kingdom. (ANI)