US Launches $1 Trillion 'Pax Silica' Fund... Semiconductor Alliance to Counter China

US Allocates $370 Million Fund
South Korea, Japan, Singapore Among Participants

The U.S. Department of State is officially launching the "Pax Silica Fund" to establish a stable global semiconductor supply chain. The initial allocation consists of $250 million in foreign aid funding (approximately 370 billion KRW), with plans to attract private capital and sovereign wealth funds to form an investment consortium totaling over $1 trillion.

The U.S. Department of State announced on the 26th (local time) the official launch of the "Pax Silica Fund" to establish a stable global semiconductor supply chain. The initial foreign aid funding is allocated at $250 million (approximately 370 billion KRW), with plans to attract private capital and sovereign wealth funds to form an investment consortium totaling over $1 trillion. Source: U.S. Department of State website

The Department of State announced on the 26th (local time) that it plans to allocate these funds in cooperation with Congress. This fund is expected to serve as a key instrument for implementing Secretary of State Marco Rubio's diplomatic policy of "trade, not aid," going beyond simple financial support.

Pax Silica is an alliance launched by the Donald Trump administration in December last year to build a stable semiconductor supply chain, with participation from countries including Korea, Japan, Singapore, the United Kingdom, Australia, and India. The core objective is to deter China's advances and to establish a stable artificial intelligence (AI) ecosystem among allied nations.

According to Jacob Helberg, U.S. Under Secretary of State for Economic Growth, Energy, and the Environment, founding members of the consortium will include Japan's SoftBank and Singapore's Temasek. Singapore, the United Arab Emirates (UAE), Qatar, and Sweden are also expected to participate in the consortium.

The United States plans to invest $250 million in this initiative.

This content was produced with the assistance of AI translation services.