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MANILA, Philippines — The Philippines and the United States have announced plans to establish a 4,000-acre industrial hub in the Luzon economic corridor, as the country joins the Pax Silica partnership of nations “hailing a growing geopolitical consensus that economic security is national security and national security is economic security.”
Such plans seek to make the Luzon economic corridor a first of its kind economic security zone, to boost production for inputs vital to US supply chains.
The US State Department said the planned industrial hub “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 Philippines, a close US treaty Ally, brings to Pax Silica key capabilities and human talent in technology manufacturing, including semiconductors and electronics,” the announcement yesterday read.
The State Department said Trade Undersecretary Ceferino Rodolfo, managing head and vice chair of the Board of Investments, signed the declaration reflecting the Philippines’ joining of Pax Silica on April 16.
Through the US-Philippines Critical Minerals Framework and the Luzon economic corridor – and as the two countries commemorate 80 years of diplomatic relations – the two allied nations declared commitment to strengthening shared supply chains in critical minerals, semiconductors, electronics and other goods, thus attracting high-quality private sector investment critical to Pax Silica.
The US welcomed the Philippines as the 13th Pax Silica signatory, joining Australia, Finland, India, Israel, Japan, Qatar, Republic of Korea, Singapore, Sweden, United Arab Emirates, United Kingdom and the United States.
Pax Silica, an initiative launched in 2025, is aimed at building a resilient supply chain for artificial intelligence and semiconductors.
Given its location, the planned industrial hub can leverage the Philippines’ geographic centrality in the Indo-Pacific. The hub will also have access to the country’s young and technically skilled workforce.
Apart from workforce capabilities in semiconductors and electronics, the Philippines is also rich in nickel, copper, chromite and cobalt – minerals that are vital to global supply chains.
Earlier this year, the Philippines was among countries that signed a memorandum of understanding with the US on critical minerals to diversify global supply chains and promote investments in the sector.
