Pax Silica Fund Press Release [U.S. Department of State Website]

The U.S. Department of State announced on the 26th (local time) that it plans to launch the "Pax Silica Fund" to build a stable semiconductor supply chain and allocate 250 million dollars (approximately 370 billion Korean won) in foreign aid funds.

The State Department issued a press release that day, stating its intention to make such funding allocations in cooperation with Congress.

The State Department emphasized its expectation for private investment and from large sovereign wealth funds managing assets of over 1 trillion dollars (approximately 1,500 trillion Korean won).

The State Department added, "Pax Silica's leading private partners and signatory nations will invest in key new technologies," and "This fund will create new commercial opportunities for companies in the United States and around the world."

Regarding the allocation of foreign aid funds to the fund, it was explained, "We will continue to realize Secretary of State Mike Pompeo's goal of 'trade, not aid' by promoting the 'America First' agenda."

Pax Silica is an alliance launched in December last year by the Donald Trump administration to build a stable semiconductor supply chain, with South Korea, Japan, Singapore, the United Kingdom, Australia, and India participating.

The goal is to build a stable artificial intelligence (AI) supply chain among allies while countering China's pursuit.

Jacob Helberg, U.S. Deputy Assistant Secretary of State for Economic Growth, Energy, and Environment, recently held a press conference in Washington D.C. to unveil the multinational consortium based on Pax Silica.

At the time, Helberg stated that the consortium's investment would exceed 1 trillion dollars, with Japan's SoftBank and Singapore's Temasek being founding members, and that the United States plans to invest 250 million dollars in it.

He also added that countries such as Singapore, the United Arab Emirates (UAE), Qatar, and Sweden are expected to participate in the consortium besides the United States.

The New York Times (NYT), citing UN statistics, pointed out that the total amount of foreign direct investment worldwide last year was 1.6 trillion dollars (2,400 trillion Korean won), and that it was unclear how the figure of 1 trillion dollars was calculated.