On June 19, 2023, the US State Department unveiled the ‘Edge AI Package’ initiative, aimed at increasing the availability of affordable and reliable smartphones in the Indo-Pacific region by committing up to $200 million. This funding is part of the Pax Silica strategy, initiated in December 2022 to create a resilient technology supply chain that counters China's dominance, particularly in the low-cost smartphone market. Through this initiative, the US aims to ensure that 1 billion potential internet users in the region are integrated into its software ecosystem, providing alternatives to Chinese manufacturers dominating the smartphone market.

The program invites proposals from smartphone manufacturers and telecom operators, emphasizing the need to demonstrate how US funding can significantly reduce consumer prices for the devices. While specific Chinese firms are not mentioned, the initiative is seen as a direct response to the prevalence of budget smartphones from companies like Huawei and Xiaomi in Southeast Asia. To ensure competitiveness in the region, the State Department has expressed a preference for proposals from smartphone manufacturers headquartered in Pax Silica partner countries, suggesting that firms like South Korea's Samsung Electronics could receive priority consideration.

Additionally, the announcement included the launch of a ‘Concierge’ service aimed at supporting businesses from partner countries in adopting key US AI infrastructure. This service will be implemented by over 270 US diplomatic missions worldwide, facilitating access to power, cooling systems, and AI hardware for those companies. As a member of the Pax Silica agreement, South Korea is eligible to take advantage of this new support service, which reflects the US's broader commitment to enhancing technological ties with its allies in the face of growing competition from China.