Yet despite deepening trade relations between the U.S. and ASEAN nations like Thailand, Malaysia and Vietnam, Singapore remains the agreement’s only Southeast Asian signatory. That decision comes even as ASEAN nations like Malaysia are investing in their own AI industries, like semiconductors and data centers.

Singapore is “precisely the kind of ‘trusted node’ the U.S. is seeking to anchor AI-era supply chains,” says Ruben Durante, a professor of economics and Provost’s Chair at the National University of Singapore (NUS). Singapore “offers strong governance, regulatory credibility, capital markets, logistics, and advanced data center and connectivity infrastructure.”

The country has a long history with chips. U.S.-based National Semiconductor set up a plant there in 1968, followed by the government’s creation of Chartered Semiconductor Manufacturing in 1987. Singapore now accounts for around 10% of all chip production. 

More recently, Singapore has strived to become an “AI nation,” investing in skilling programs to train its workforce and encouraging local AI development. The country has also attracted billions of dollars’ worth in cloud computing and data centers, including from Big Tech companies like Amazon and Google. 

While the U.S. is trying to shore up its AI supply chain, Singapore might also benefit from being part of Pax Silica, Atreyi Kankanhalli, a computing professor from NUS, suggests. Being part of Pax Silica gives the country—which has less land area than New York City—a seat at the table when the U.S. discusses joint ventures in chip production and logistics. It also gives the resource-poor city-state a safety net to ward off future supply shocks, while enabling access to the latest AI technologies. 

Both the U.S. and China are trying to leverage their dominance in particular industries against each other. 

Washington has blocked the sale of advanced processors, key to training and running AI models, to China since 2022. Beijing, in turn, has slapped export controls on rare earth minerals, a crucial component used for semiconductors and magnets in the AI supply chain. (China has a stranglehold on rare earths, supplying 90% of the world’s processed rare earths and rare earth magnets.)

“The AI race is often framed as a battle over data or models, but the real constraints are increasingly physical—chips, energy and supply chains,” says Simon Chesterman, a law professor from NUS and the senior director of AI governance at research institute AI Singapore.

In addition to Singapore, the U.S. included several close allies in the Pax Silica agreement: Japan, South Korea, Australia, the U.K. and Israel.

Japan and South Korea were chosen as they anchor advanced semiconductor manufacturing, says Durante of NUS. Additionally, Australia is central for critical minerals, the U.K. contributes standards-setting and intelligence alignment, and Israel brings high-end AI and defense-related innovation.

Experts think that the U.S.’s inner circle on AI will soon expand. Durante, from NUS, argues that a small founding group will facilitate early coordination on sensitive issues. Several non-signatories, like the Netherlands and the United Arab Emirates, were involved in initial discussions of the Pax Silica, which Durante sees as an “outer ring” of contributors, even if they’re not yet fully aligned with the U.S

“Expansion will depend on whether Pax Silica develops concrete mechanisms, such as financing, standards, or procurement coordination,” he says, adding that countries which combine industrial relevance with willingness to align on economic-security priorities are the most likely candidates for addition. 

While other Southeast Asia countries could eventually become important nodes in the AI supply chain, they still face constraints like a lack of infrastructure and dispersed talent, explains Anant Shivraj, a managing director and partner at Boston Consulting Group (BCG). 

Yet this could soon change, as Vietnam and Malaysia strive to become key hubs in the region, particularly in semiconductors and data centers.

“Pax Silica’s first wave is more focused on countries that can anchor long-term control, governance, and security across the AI stack,” says Shivraj. “Many countries play essential roles, and even if they are not part of the inner circle yet, that circle may well expand.”

Cherfilus-McCormick was scheduled to be arraigned, but her attorney requested the proceeding be rescheduled to Jan. 20 so that she could finalize her legal team. Prosecutors didn’t object, and Judge Lisette Reid agreed to the new date. The hearing lasted less than five minutes.

“I just want to make it very clear that I am innocent,” Cherfilus-McCormick said immediately after leaving court. “In no way did I steal any kind of funds. I’m committed to the people of Florida and my district.”

Cherfilus-McCormick, a Democrat, has pleaded not guilty. She is facing 15 federal counts that accuse her of stealing funds that had been overpaid to her family’s health care company, Trinity Healthcare Services, in 2021. The company had a contract to register people for COVID-19 vaccinations.

Cherfilus-McCormick’s attorney, David Oscar Markus, said the case involves mistakes that generally aren’t even misdemeanors, let alone felonies. He said he believes the case is politically motivated.

Cherfilus-McCormick was arrested in November and then freed on a $60,000 bond. In addition to bail, the judge said Cherfilus-McCormick must surrender her personal passport, and is allowed to travel only between Florida, Washington, D.C., Maryland and the Eastern District of Virginia.

She has been allowed to retain her congressional passport so she can perform certain duties for her job.

According to the federal indictment, prosecutors said that within two months of receiving the funds in 2021, more than $100,000 had been spent on a 3-carat yellow diamond ring for the congresswoman.

The health care company owned by Cherfilus-McCormick’s family had received payments through a COVID-19 vaccination staffing contract, the indictment said. Her brother, Edwin Cherfilus, requested $50,000, but they mistakenly received $5 million and didn’t return the difference.

Prosecutors said the funds received by Trinity Healthcare were distributed to various accounts, including to friends and relatives who then donated to Cherfilus-McCormick’s campaign for Congress.

Cherfilus-McCormick won a special election in January 2022 to represent Florida’s 20th District, which includes parts of Broward and Palm Beach counties, after Rep. Alcee Hastings died in 2021.

The charges she faces include theft of government funds; making and receiving straw donor contributions; aiding and assisting a false and fraudulent statement on a tax return; money laundering, as well as conspiracy charges associated with each of those counts.

According to a previous statement provided by Cherfilus-McCormick’s chief of staff, she doesn’t plan to resign from office. She said she has cooperated with “every lawful request” and will continue to do so until the matter is resolved.

President Donald Trump teased that he has a preferred candidate to be the next chair of the Federal Reserve, but is in no hurry to make an announcement — while also musing that he might fire the central bank’s current leader, Jerome Powell.