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The United States and the Philippines plan to establish a 4,000-acre industrial hub in Luzon to increase production for inputs vital to US supply chains
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The plan follows the Philippines joining the Pax Silica initiative launched by the U.S. and more than 10 other nations
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Pax Silica is a flagship effort on AI and supply chain security
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The planned site is being offered by the Philippines as an economic security zone and is intended to serve as a staging point for a purpose-built platform for allied manufacturing
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The hub will be located within the Luzon Economic Corridor
The United States and the Philippines plan to establish a 4,000-acre industrial hub in Luzon to increase the production for inputs vital to US supply chains.
The plan follows the Philippines joining the Pax Silica initiative, launched by the US and more than 10 other nations. It is a flagship effort on artificial intelligence (AI) and supply chain security, advancing new economic security consensus among allies and trusted partners.
The Philippines is the 13th signatory of Pax Silica, according to a press release from the US Department of State.
The Philippines, a long-time close American ally, “brings to Pax Silica key capabilities and human talent in technology manufacturing, including semiconductors and electronics,” the statement said.
Trade and Industry undersecretary Ceferino Rodolfo served as the country’s signing representative.
Through the US-Philippines Critical Minerals Framework and the Luzon Economic Corridor, the two countries reiterated their commitment to strengthen shared supply chains in critical minerals, semiconductors, electronics, and other goods and attracting high-quality private sector investment critical to Pax Silica.
The planned site – the first of its kind – is being offered by the Philippines as an economic security zone and is intended to serve as a staging point for a purpose-built platform for allied manufacturing, an investment acceleration hub where specific industrial activities can be shaped by market demand, host-country comparative advantages, and the evolving needs of the Pax Silica network.
The economic security zone is part of a broader strategy to increase production for inputs vital to U.S. supply chains. Situated within the Luzon Economic Corridor, the zone can leverage the Philippines’ geographic centrality in the Indo-Pacific, its young and technically skilled workforce, and its deepening alliance with the U.S.
READ: 15 more projects for Luzon Economic Corridor proposed
The two governments intend to identify appropriate frameworks for the long-term development of the zone that facilitate sovereign alignment and shared upside as it scales.
Other Pax Silica signatories include Australia, Finland, India, Israel, Japan, Qatar, Republic of Korea, Singapore, Sweden, the United Arab Emirates, the United Kingdom, and the United States. Additional signatories are expected to follow.
