[Paper] The Two-Layer Structure Model in Pax Silica and Japan's Information Sovereignty: Policy Roles for Japanese LLMs and Public Data Infrastructure: January 25, 2026 (Sun)

[Abstract]

This paper analyzes the structure of international cooperation regarding the entire technology stack in the AI era, focusing on the "Pax Silica" international cooperation framework announced by the U.S. Department of State in December 2025. While existing literature has focused on the geopolitical risks of material foundations such as semiconductors, critical minerals, and advanced manufacturing, the policy implications of "full-stack cooperation"—which includes the AI ecosystem (foundation models, data, and software)—have not been sufficiently examined. Relying on official definitions, this paper presents a two-layer structure model consisting of "material foundations (Layer 1)" and "AI ecosystems (Layer 2)" as the author's original analytical framework. Furthermore, it derives the policy conclusion that the development of Japanese LLMs and public data infrastructure is essential for Japan to capture value domestically and ensure information sovereignty (intellectual sovereignty) through its participation in the framework. The theoretical contribution of this paper lies in reinterpreting Pax Silica not merely as a framework for supply chain resilience, but as a multi-layered cooperation system that includes AI optimization for each linguistic sphere and data sovereignty.

[Main Text]
1. Introduction

With the rapid development of AI technology, material foundations such as semiconductors, critical minerals, electricity, and logistics are being redefined as "strategic assets." On the other hand, AI performance strongly depends on software domains such as model architecture, training data, and language optimization. The Pax Silica Declaration (U.S. Department of State 2025), which is the subject of this paper, explicitly includes the entire stack from minerals to the application layer as the target of cooperation, positioning it as a comprehensive framework that goes beyond traditional supply chain cooperation.

However, existing research is biased toward the geopolitical risks of material foundations and does not sufficiently address the policy importance of the "second layer," which includes the AI ecosystem. To bridge this gap, this paper re-theorizes Pax Silica as a two-layer structure and examines the conditions under which Japan can capture value from the framework.

2. Previous Research and Policy Background

2.1 Official Definition of Pax Silica and the International Environment

The U.S. Department of State (2025) defines Pax Silica as an international cooperation framework covering the entire technology stack of the AI era, explicitly including semiconductors, computing resources, software, and foundation models. The Japanese government has also announced its participation by signing the declaration (Ministry of Foreign Affairs 2025).

2.2 Review of Existing Research

Existing reports and analyses (Business+IT 2025; CRDS 2026; Semiconductor Business Lab 2026) point to the following as background:

• The influence of China's critical mineral supply,
• The risk of manufacturing concentration in Taiwan,
• The rapid surge in AI and semiconductor investment,

but the policy implications of the AI ecosystem are not sufficiently discussed.

2.3 Positioning of this Paper

This paper is unique in that it reconstructs Pax Silica as a two-layer structure of "materials (hardware)" and "AI ecosystem (software)" and presents Japan's policy challenges from the perspectives of linguistic sphere optimization and data sovereignty.

3. Analytical Framework: Two-Layer Structure Model (Author's Theory)

The two-layer structure model presented in this paper is one that the author has theoretically reconstructed based on the official definition.

Layer 1: Material Foundations (Hardware)

This is the domain where supply constraints immediately ripple across the entire industry, including critical minerals, refining, advanced manufacturing, semiconductors, computing resources, energy, and logistics.

Layer 2: AI Ecosystem (Software)

This includes the joint development of non-English LLMs, Japanese data infrastructure, safety standards, and cross-border research collaboration. As long as Pax Silica includes foundation models, Layer 2 is policy-wise indispensable.

Implications

If the second layer weakens, there is a risk that investments in the first layer will not spill over domestically, turning Japan into a mere 'supplier of raw materials.' Conversely, a comparative advantage can be formed at the intersection of both layers.

4. Propositions (Author's Policy Analysis)

P1: The advancement of Japanese LLMs is essential for securing information sovereignty.

Relying on the extrapolation of English models may introduce structural biases into public decision-making due to differences in institutions, culture, and pragmatics.

P2: A public Japanese data infrastructure is a prerequisite for value capture.

Rights processing, anonymization, and provenance management have high public-good characteristics, which individual companies cannot manage alone.

P3: Unless the second layer is incorporated into collaborative design, Japan will become a supplier of raw materials.

Institutionalizing the second layer can guarantee the domestic spillover of first-layer investments.

P4: Japan's comparative advantage lies at the intersection of the first and second layers.

By combining strengths in materials and equipment with Japanese LLMs, data infrastructure, and governance, it is easier to gain leadership.

5. Policy Design: Roadmap for Two-Layer Integration

5.1 Short-term (within 1 year)

• Clarification of the command center
• Immediate expansion of the Japanese foundational corpus
• Concentration of priority investments in LLMs
• 'Second-layer clause' formation between Japan, the US, and South Korea

5.2 Medium-term (1–3 years)

• Generational updates of Japanese foundational models
• Permanent establishment of a public evaluation infrastructure
• Institutionalization of safety and transparency

5.3 Long-term (3–5 years)

• Construction of an international data space
• Development of cross-industry application layers

6. Conclusion

This paper re-theorized Pax Silica as a two-layer structure and argued that the development of Japanese LLMs and public data infrastructure is essential for Japan to capture value from the framework and secure its information sovereignty. Future research is needed on participant composition, the design of binding agreements, and funding schemes.

References

Business+IT (2025) "Launch of 'Pax Silica,' an AI Semiconductor and Mineral Supply Chain Framework for the U.S., Japan, South Korea, Australia, and Others," December 14, 2025.
https://www.sbbit.jp/article/cont1/177009

CRDS (Center for Research and Development Strategy) (2026) "State Department Launches 'Pax Silica,' an International Partnership Centered on Economic Security in the AI Era," January 21, 2026.
https://crds.jst.go.jp/dw/20260121/2026012144145/

Digital Agency (2025a) "Guidelines for the Procurement and Utilization of Generative AI for Administrative Evolution and Innovation," May 27, 2025.
https://www.digital.go.jp/assets/contents/node/basic_page/field_ref_resources/e2a06143-ed29-4f1d-9c31-0f06fca67afc/80419aea/20250527_resources_standard_guidelines_guideline_01.pdf

Digital Agency (2025b) "Guidebook for Countermeasures Against Risks in the Utilization of Text-Generating AI (Alpha Version)," June 6, 2025.
https://www.digital.go.jp/resources/generalitve-ai-guidebook

Ministry of Foreign Affairs (2025) "Attendance of Senior Deputy Minister for Foreign Affairs Akahori at the 'Pax Silica Summit' (Press Release)," December 13, 2025.
https://www.mofa.go.jp/mofaj/press/release/pressit_000001_03107.html

Ministry of Economy, Trade and Industry / Ministry of Internal Affairs and Communications (2024) "AI Business Guidelines (Version 1.0)," April 19, 2024.
https://www.meti.go.jp/press/2024/04/20240419004/20240419004-1.pdf

Semiconductor Business Lab (2026) "What is Pax Silica? — An Era Where Semiconductors Create a 'World Order'," January 16, 2026.
https://note.com/modern_eider5829/n/n1725791ad889

U.S. Department of State (2025) "Pax Silica," December 12, 2025.
https://www.state.gov/pax-silica/

[Paper] The Two‑Layer Structural Model of Pax Silica and Japan’s Information Sovereignty — Policy Roles of Japanese‑Language LLMs and Public Data Infrastructure: Sunday, January 25, 2026

Abstract

This paper analyzes the structure of international cooperation surrounding the full technology stack in the AI era, focusing on “Pax Silica,” an international framework announced by the U.S. Department of State in December 2025. While existing literature has emphasized the geopolitical risks associated with material foundations such as semiconductors, critical minerals, and advanced manufacturing, it has not sufficiently examined the policy implications of “full‑stack cooperation,” which includes the AI ecosystem—foundation models, data, and software. Building on the official definition, this paper proposes a two‑layer structural model consisting of a “material foundation (Layer 1)” and an “AI ecosystem (Layer 2)” as an original analytical framework. It further argues that, for Japan to capture domestic value and secure information sovereignty (intellectual sovereignty) through participation in the framework, the development of Japanese‑language LLMs and public data infrastructure is indispensable. The theoretical contribution of this paper lies in reinterpreting Pax Silica not merely as a supply‑chain resilience initiative but as a multilayered cooperative architecture encompassing linguistic optimization of AI and data sovereignty.

1．Introduction

With the rapid advancement of AI technologies, material foundations such as semiconductors, critical minerals, electricity, and logistics are increasingly being redefined as “strategic assets.” At the same time, AI performance depends heavily on soft components, including model architecture, training data, and linguistic optimization. The Pax Silica Declaration (U.S. Department of State 2025), which this paper examines, explicitly designates the entire stack—from minerals to the application layer—as the target of cooperation, positioning the framework as a comprehensive initiative that goes beyond traditional supply‑chain collaboration.

However, existing research has focused predominantly on the geopolitical risks associated with material foundations and has not sufficiently addressed the policy significance of “Layer 2,” which includes the AI ecosystem. To fill this gap, this paper reconceptualizes Pax Silica as a two‑layer structure and examines the conditions under which Japan can capture value domestically through participation in the framework.

2．Existing Research and Policy Context

2.1 Official Definition and International Context of Pax Silica

According to the U.S. Department of State (2025), Pax Silica is defined as an international cooperation framework covering the entire technology stack in the AI era, including semiconductors, compute resources, software, and foundation models. The Government of Japan has publicly announced its participation (Ministry of Foreign Affairs 2025).

2.2 Review of Existing Analyses

Existing reports and analyses (Business+IT 2025; CRDS 2026; Semiconductor Business Lab 2026) highlight:

• China’s growing influence over critical mineral supply,
• the concentration of advanced manufacturing in Taiwan,
• the rapid expansion of AI and semiconductor investment,

as key background factors. However, they do not sufficiently address the policy implications of the AI ecosystem.

2.3 Positioning of This Paper

This paper reconstructs Pax Silica as a two‑layer structure—“material (hard)” and “AI ecosystem (soft)”—and identifies Japan’s policy challenges from the perspective of linguistic optimization and data sovereignty.

3. Analytical Framework: The Two‑Layer Model (Author’s Theory)

The two‑layer model proposed in this paper is an original theoretical reconstruction based on the official definition.

Layer 1: Material Foundation (Hard Layer)

This includes critical minerals, refining, advanced manufacturing, semiconductors, compute resources, energy, and logistics—domains where supply constraints immediately affect entire industries.

Layer 2: AI Ecosystem (Soft Layer)

This includes joint development of non‑English LLMs, Japanese‑language data infrastructure, safety standards, and cross‑border research collaboration. Since Pax Silica explicitly includes foundation models, Layer 2 is a policy‑critical domain.

Implication

If Layer 2 remains underdeveloped, investments in Layer 1 will not generate domestic spillovers, increasing the risk that Japan becomes merely a “material supplier.” Conversely, Japan can establish comparative advantage at the intersection of the two layers.

4. Propositions (Author’s Policy Analysis)

P1: Advancing Japanese‑language LLMs is essential for securing information sovereignty.

Reliance on extrapolation from English‑centric models risks introducing structural biases into public decision‑making due to differences in institutions, culture, and pragmatics.

P2: A public Japanese‑language data infrastructure is a prerequisite for value capture.

Rights management, anonymization, provenance, and metadata quality have strong public‑good characteristics and cannot be sufficiently addressed by individual firms.

P3: Without embedding Layer 2 into the cooperation framework, Japan risks becoming a material‑supply country.

Institutionalizing Layer 2 is necessary to ensure domestic spillovers from Layer 1 investments.

P4: Japan’s comparative advantage emerges at the intersection of Layers 1 and 2.

By combining strengths in materials, refining, and equipment with Japanese‑language LLMs, data infrastructure, and governance, Japan can gain strategic leverage in cooperation design.

5. Policy Design: A Roadmap for Integrating the Two Layers

5.1 Short Term (within 1 year)

• Establish a clear central coordinating body
• Rapidly expand Japanese‑language corpora
• Concentrate investment in LLM‑related technologies
• Institutionalize “Layer 2 clauses” in Japan–U.S.–Korea cooperation

5.2 Medium Term (1–3 years)

• Update Japanese‑language foundation models
• Establish a permanent public evaluation platform
• Institutionalize safety, transparency, and auditability

5.3 Long Term (3–5 years)

• Build an interoperable international data space
• Develop cross‑industry application‑layer Japanese‑language agents

6. Conclusion

This paper reconceptualized Pax Silica as a two‑layer structure and argued that, for Japan to capture value and secure information sovereignty, the development of Japanese‑language LLMs and public data infrastructure is indispensable. Future research should address issues such as participant composition, binding agreement design, and funding mechanisms.

References

Business+IT. 2025. “Launch of ‘Pax Silica,’ a Supply‑Chain Framework for AI Semiconductors and Critical Minerals among Japan, the U.S., South Korea, and Australia.” December 14, 2025. [in Japanese]
https://www.sbbit.jp/article/cont1/177009

CRDS (Center for Research and Development Strategy). 2026. “U.S. Department of State Launches ‘Pax Silica,’ an International Initiative for Economic Security in the AI Era.” January 21, 2026. [in Japanese]
https://crds.jst.go.jp/dw/20260121/2026012144145/

Digital Agency. 2025a. Guidelines for the Procurement and Utilization of Generative AI for Administrative Evolution and Innovation. May 27, 2025. [in Japanese]
https://www.digital.go.jp/assets/contents/node/basic_page/field_ref_resources/e2a06143-ed29-4f1d-9c31-0f06fca67afc/80419aea/20250527_resources_standard_guidelines_guideline_01.pdf

Digital Agency. 2025b. Guidebook on Risk Countermeasures in the Utilization of Text‑Generating AI (Alpha Version). June 6, 2025. [in Japanese]
https://www.digital.go.jp/resources/generalitve-ai-guidebook

Ministry of Foreign Affairs of Japan. 2025. “Vice‑Minister Akahori Attends the ‘Pax Silica Summit’ (Press Release).” December 13, 2025. [in Japanese]
https://www.mofa.go.jp/mofaj/press/release/pressit_000001_03107.html

Ministry of Economy, Trade and Industry & Ministry of Internal Affairs and Communications. 2024. AI Service Provider Guidelines (Version 1.0). April 19, 2024. [in Japanese]
https://www.meti.go.jp/press/2024/04/20240419004/20240419004-1.pdf

Semiconductor Business Lab. 2026. “What Is Pax Silica? The Era When Semiconductors Shape the World Order.” January 16, 2026. [in Japanese]
https://note.com/modern_eider5829/n/n1725791ad889

U.S. Department of State. 2025. “Pax Silica.” December 12, 2025.
https://www.state.gov/pax-silica/