Finland Joins US 'Pax Silica' to Strengthen Semiconductor Supply Chain

## Press Release Information
Title: Finland Joins US 'Pax Silica' to Strengthen Semiconductor Supply Chain
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Body (First 8000 characters): Central News Agency

(CNA, Helsinki, April 20th) Last week in Washington, Finland joined the US-led "Pax Silica," becoming the 14th signatory nation and the second EU member after Sweden. Pax Silica is not a traditional military alliance but a collaborative relationship integrating semiconductor, rare mineral, and artificial intelligence supply chains, centered on economic security. Members leverage their respective strengths to compete against China's red supply chain.

Represented by Finnish Minister of Economic Affairs Sakari Puisto, the signing ceremony was presided over by US Under Secretary of State for Economic Affairs Jacob Helberg.

Launched by the US in December last year, Pax Silica aims to promote innovation, consolidate secure digital infrastructure, and protect sensitive technologies from outflow. It covers critical minerals, energy, advanced manufacturing, semiconductors, AI infrastructure, and logistics. Member nations have key roles and initiatives: Japan and South Korea are responsible for semiconductor manufacturing and memory; Australia supplies critical minerals; Israel and the UK are in charge of chip design; India has engineering talent and mineral refining technology; Singapore acts as the Indo-Pacific hub; the UAE provides energy and sovereign funds; and Sweden is a hub for 5G equipment.

Finland's inclusion is attributed to its solid foundation in telecommunications and AI through Nokia, along with its mineral and metal processing capabilities in Northern Europe. Helberg stated at the ceremony that this cooperative framework is now more complete with Finland's addition to the puzzle of advanced mobile communications, AI, and critical mineral extraction and refining.

Finland's public broadcaster (Yle) quoted Mikael Wigell, CEO of the Economic Security Forum, analyzing that geopolitics has already permeated business decisions. He frankly stated: "Companies will have to think more carefully about who they sign contracts with and what risks are hidden in the contract when formulating their business strategies."

Wigell warned that China not only possesses countermeasures but also that related measures are already in effect. China controls 85% of the world's critical metal refining; if this key supply chain is disrupted, production lines from battery manufacturing to smart devices will inevitably halt. The military industry, which is taking off with the AI wave, will also be unavoidably hindered. Notably, China has recently imposed restrictions on rare earth exports.

Yle's report highlighted the situation for Finnish companies: the global market for digital products and services is highly competitive, with the top 3 players holding 80% of the market share, and the remaining 20% divided among thousands of smaller companies. For Finnish companies to break into the top 3, choosing the right partners is crucial. Wigell stated frankly: "As long as we can be irreplaceable, this is a huge opportunity for Finland."

Taiwan is the production site for over 90% of the world's advanced process chips. Although not officially a signatory to Pax Silica, it participated as a guest in the founding summit's manufacturing and semiconductor sessions last December. In January, the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO) signed a joint statement endorsing the declaration's principles. Helberg has publicly called Taiwan's contribution to advanced semiconductor manufacturing "priceless." (Editor: Chen Cheng-gong) 1150420.

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