US and EU move closer to Pax Silica tech alliance aimed at China

European Union member states have taken a significant step toward joining the US-led Pax Silica initiative, a proposed global technology alliance designed to secure semiconductor and digital supply chains outside of China. The move could reshape how the EU cooperates with the United States and other partners on critical technologies.

The preliminary green light from EU governments comes as Brussels pushes its own agenda for technological sovereignty, seeking to reduce Europe’s dependency on foreign providers of key digital infrastructure and components.

EU ambassadors back EU-wide entry into Pax Silica

According to EU sources, national ambassadors meeting in Brussels on Wednesday endorsed giving the European Commission a mandate to sign the Pax Silica declaration on behalf of the entire bloc. This would turn what is now a coalition of individual states into a broader political and technological alignment.

The formal decision is expected on 8 June, when EU ministers meet in Luxembourg. Only then will the Union as a whole be able to accede to the US initiative.

Pax Silica, announced by the US Department of State at the end of 2025, is intended to create alternative supply chains for semiconductors and microprocessors, reducing dependence on China. Several EU countries – Finland, the Netherlands, Greece, and Sweden – have already joined individually, but full EU participation requires unanimous approval from all member states.

What Pax Silica aims to achieve

The name of the initiative – literally “silicon peace” – reflects its focus on stabilising and securing strategic technology sectors. The declaration outlines a shared vision of deepening economic cooperation through coordinated action on investment security, infrastructure, and incentive schemes.

Signatories commit to working together on key segments of global technology supply chains, including:

• Software applications and platforms
• Advanced foundational AI models
• Information connectivity and network infrastructure
• Computing power and semiconductors
• High-end manufacturing and industrial capacity
• Transport logistics
• Refining and processing of critical minerals
• Energy for powering digital infrastructure

The initiative brings together a group of technologically advanced partners. Besides current and prospective EU participants, the declaration has also been signed by countries such as the United Kingdom, Australia, Japan, South Korea, Israel, and the United Arab Emirates.

EU technological sovereignty and the US-China context

The timing of the EU’s move is notable. The ambassadors’ approval came on the same day the European Commission unveiled a package aimed at strengthening the bloc’s technological sovereignty. That package is focused on lowering Europe’s reliance on non-EU suppliers of digital technologies.

While the Commission did not single out specific countries, the backdrop is clear. China remains a dominant supplier of rare earth elements and other critical minerals used in high-tech manufacturing, while US-based platforms and cloud providers still hold a leading position in the EU’s digital market.

By the Commission’s own estimates, more than 80% of products, services, and intellectual property in the EU’s digital sector originate outside the Union. This concentration has raised concerns in Brussels about strategic dependencies and the EU’s ability to set its own course in areas such as cloud computing, AI, and telecoms infrastructure.

Tensions over EU regulation of US tech giants

EU efforts to counterbalance the dominance of large American technology companies through regulation have already created friction with Washington. The Digital Markets Act (DMA), which targets systemic platforms and gatekeepers, has been criticised by parts of the US administration and industry as being discriminatory toward American firms.

Despite those disagreements, the willingness to move ahead with Pax Silica shows that Brussels and Washington continue to see shared interests in securing semiconductor and broader tech supply chains in the face of geopolitical competition with China.

Broader diplomatic engagement around Pax Silica

The initiative is also featuring in bilateral contacts. On 14 May, Pax Silica was among the topics discussed in a meeting between Polish foreign minister Radosław Sikorski and the US ambassador to Poland, Tom Rose. This underlines that for Washington, the project is not only an economic framework but also a tool of foreign and security policy.

If EU ministers confirm membership in June, the Union will position itself more firmly within a US-centred technological bloc, even as it continues to push for greater autonomy and stronger internal capacities in critical digital technologies.