MANILA - The United States and the Philippines announced plans to build a 4,000-acre (1,620-hectare) industrial hub after the Philippines formally joined Pax Silica, a Washington-led program intended to secure technology supply chains for AI and semiconductors, the U.S. State Department said in a statement.
Pax Silica, which the statement said now counts the Philippines as its 13th member, aims to protect the complete technology supply chain. The initiative is framed around securing critical minerals, advanced manufacturing capabilities, computing resources and data infrastructure.
The State Department described the proposed facility in the Luzon Economic Corridor as "a staging point for a purpose-built platform for allied manufacturing." The corridor is a focal point of economic activity that includes Manila and adjacent regions where industrial and manufacturing operations are concentrated.
Under a trilateral framework agreement, the Philippines, Japan and the United States have pledged to step up infrastructure investment in the Luzon Economic Corridor, the statement said. In addition, the two Allies said they are committed to "strengthening shared supply chains in critical minerals, semiconductors, electronics, and other goods."
"It is intended to serve as a staging point for a purpose-built platform for allied manufacturing," the State Department said.
The announcement comes as relations between Manila and Washington have warmed under Philippine President Ferdinand Marcos Jr., who has shifted his country closer to the United States, the statement noted. The Philippines, a former U.S. colony, figures prominently in Washington's efforts to push back against China's assertiveness in the South China Sea, the statement added.
Pax Silica is described as a central element of what the statement calls the Trump administration's economic statecraft strategy, with an explicit goal of reducing dependence on rival nations while bolstering cooperation among allied partners. Other countries listed as signatories to Pax Silica include Australia, Finland, India, Qatar, South Korea and Singapore.
The intent behind the hub and the broader Pax Silica commitments is to create a concentrated location that can host allied manufacturing and support the secure flow of materials and technologies related to semiconductors and AI systems. The Luzon Economic Corridor's existing industrial base and proximity to Manila were cited as strategic reasons for situating the hub there.
No further operational details, timelines or financing specifics were provided in the State Department statement.