US, Philippines Forge Strategic Industrial Hub to Bolster Chip Supply Chains

Manila— The United States and the Philippines will build a 4,000-acre industrial hub in the Luzon Economic Corridor to strengthen supply chain security in semiconductors and artificial intelligence, the U.S. State Department said on Friday, as Manila joins a Washington-led initiative aimed at securing critical technology networks.

The Philippines becomes the 13th member of Pax Silica, a programme designed to safeguard the full spectrum of the technology supply chain, including critical minerals, advanced manufacturing, computing and data infrastructure.

The initiative forms part of the Trump administration’s broader economic strategy to reduce reliance on rival nations and deepen coordination among allied partners. Other participating countries include Australia, Finland, India, Qatar, South Korea and Singapore.

The planned industrial hub will be located within the Luzon Economic Corridor, a key economic zone encompassing Manila and surrounding regions with established manufacturing capacity. The Philippines, Japan and the United States have also committed to increasing infrastructure investment in the corridor under a trilateral framework agreement.

“It is intended to serve as a staging point for a purpose-built platform for allied manufacturing,” the State Department said, adding that both countries aim to reinforce supply chains across semiconductors, electronics and other critical sectors.

The project underscores strengthening ties between Manila and Washington under President Ferdinand Marcos Jr., who has moved to deepen cooperation with the United States.

The Philippines, a former U.S. colony, has also taken on strategic importance in Washington’s efforts to counter China’s assertiveness in the South China Sea.