The India-US partnership in semiconductors and artificial intelligence (AI) has shifted decisively from strategic dialogue to industrial execution, anchored by the US-India TRUST Initiative and the PAX Silica Declaration. The transition, which accelerated following US Secretary of State Marco Rubio's recent visit to New Delhi, is now focused on building trusted technology supply chains, expanding computational capacity, and launching joint research and development projects.

Origins of the TRUST Framework

The strategic vision was first articulated in February 2025, when Prime Minister Narendra Modi and US President Donald Trump jointly outlined the Transforming the Relationship Utilizing Strategic Technologies (TRUST) initiative. The framework was designed to inject fresh momentum into AI-driven innovation and deploy emerging technologies for broader human prosperity, according to senior officials.

Since then, the initiative has moved rapidly from vision to implementation, with both governments aligning commercial digitisation goals with national security imperatives. The partnership is jointly steered by the National Security Advisors of both countries.

Semiconductor Manufacturing and Industrial Partnerships

A central pillar of the collaboration is defence and commercial semiconductor manufacturing. The Shakti Semiconductor Fab is among the flagship projects, developing compound semiconductors for electric vehicle (EV) and aerospace applications.

US companies including General Atomics and Synopsys are partnering with Indian entities such as 3rdiTech to validate chip designs and train a robust engineering workforce, officials said. By formally joining the PAX Silica Declaration — a US-led strategic coalition for secure and resilient supply chains in AI, semiconductors, and critical minerals — India has consolidated its position within a select global network aimed at reducing dependence on adversarial nations.

AI Infrastructure and Big Tech Investment

The two governments are actively developing an AI Infrastructure Roadmap to overcome constraints in financing, powering, and scaling large-scale US-origin AI infrastructure within India. American technology companies are also seeking access to India's fast-growing AI market, and the US views India as a critical partner for building AI infrastructure outside China.

Tech giants including Amazon, Microsoft, and Google are making multi-billion-dollar investments to expand India's cloud networks and local data-centre capabilities. Both governments are aligned on reciprocal compute access and shared regulatory frameworks, with the stated aim of empowering startups and driving cross-border innovation without restrictive AI-diffusion policies.

Critical Minerals Pact: Reducing China Dependence

During Rubio's visit, India and the US signed a strategic agreement deepening cooperation in critical minerals and rare earths — foundational materials used in semiconductors, EVs, solar panels, and high-tech defence products. The pact is explicitly framed against the backdrop of China's dominance over these inputs, which critics argue gives Beijing the leverage to disrupt global supply chains.

Rubio stated that the agreement was signed because India and the US 'have a strategic and shared interest in the fact that vibrant innovation economies such as ours cannot afford to leave the foundational materials of these industries vulnerable to single source monopolies that could deny us these things, not just in a time of conflict, but as a leverage point contrary to our sovereign national interests.'

The agreement also opens the door for joint financing and investment in critical mineral and rare earth ventures, securing the raw materials necessary for semiconductor fabrication and defence technologies.

What Comes Next

With industrial partnerships now operational and a critical minerals pact in place, the focus is expected to shift to scaling execution — particularly on financing frameworks for AI infrastructure and verifiable workforce development targets in the semiconductor sector. The trajectory of this partnership will be closely watched as a template for US technology alliances in the Indo-Pacific.