US-Philippines to Build 4,000-Acre AI Hub in Luzon Under New Pact

The project, designated as an Economic Security Zone (ESZ), is a centrepiece of the newly signed Pax Silica pact, a Washington-led initiative aimed at securing critical technologies against geopolitical instability.

The US Department of State said on Friday (local time) that the US and the Philippines will set up a 4,000-acre industrial hub in the Luzon Economic Corridor, billed as the first "AI-native Industrial Acceleration Hub" under the Pax Silica initiative, as both nations deepen supply-chain ties amid shifting geopolitical currents.

The announcement came as the Philippines formally joined Pax Silica, becoming the thirteenth signatory to the US-led partnership that frames economic security as national security. The initiative now includes Australia, Finland, India, Israel, Japan, Qatar, Republic of Korea, Singapore, Sweden, the United Arab Emirates, the United Kingdom, and the United States, according to the press release. It added that more countries are expected to join.

Manila is offering the site as an "Economic Security Zone" designed to "surge production for inputs vital to U.S. supply chains." The hub is intended to serve as a staging point for allied manufacturing and an investment acceleration platform where industrial activity will be shaped by market demand, the host country's comparative advantages, and the needs of the Pax Silica network.

Philippines Department of Trade and Industry Undersecretary and Board of Investments Vice Chairperson Ceferino S. Rodolfo signed the declaration on behalf of Manila. The US described the Philippines as a "close U.S. treaty Ally" that brings "key capabilities and human talent in technology manufacturing, including semiconductors and electronics" to the group.

The US Department of State added that the move builds on existing cooperation through the United States-Philippines Critical Minerals Framework and the Luzon Economic Corridor, and comes as the two allies mark 80 years of diplomatic relations. Both sides said they are committed to strengthening shared supply chains in critical minerals, semiconductors, electronics, and other goods, while attracting "high-quality private sector investment critical to Pax Silica."

Pax Silica is being pitched as a "positive-sum partnership of nations who want to remain competitive and prosperous," grounded in the view that "economic security is national security and national security is economic security."

The Luzon hub is the first of its kind under the framework and signals Washington and Manila's intent to anchor trusted, resilient production capacity in the Indo-Pacific. Additional signatories and similar hubs are expected as the network expands.

- ANI