US plans Panama pilot to speed AI chip shipments

The United States Department of State announced on Wednesday that it is seeking bids for a new initiative to expedite the transportation of AI infrastructure components, starting with a pilot program in Panama. This initiative, referred to as Pax Silica, aims to create a digital platform that acts as a digital passport for electronic components, validating their provenance and transit route through the Panama Canal.

This would facilitate customs clearance for shipments believed to be reliable. For several years, the U.S. has imposed restrictions on the export of advanced semiconductors essential for AI model training to China, aiming to prevent third countries from serving as potential loopholes. The State Department's request for proposals frames the future platform as an "alternative" to the logistics systems of "strategic competitors" potentially utilized for "economic coercion."

If the Panama pilot proves successful, it could potentially be extended to other partner nations under the Pax Silica program. The State Department is also seeking to collaborate with Congress in committing $50 million (RM204 million) to the program. Pax Silica was introduced last year by the State Department with the objective of securing semiconductor and other advanced technology supply chains, driven by concerns over China's dominance in this sector.

The initiative has gained support from 24 signatories, including the European Union, Japan, India, Panama, and Singapore.