SAN FRANCISCO, California – The United States and the Philippines have reached a landmark agreement on civil nuclear cooperation, marking a significant step in strengthening ties between the two nations and advancing their shared goals of clean energy, energy security, and global nonproliferation.

The "123" agreement, which was announced on Wednesday (US Time) by Vice President Kamala Harris and Philippine President Ferdinand Marcos Jr., provides the legal framework for the U.S. to export nuclear equipment and material to the Philippines. This will not only facilitate the development of clean energy sources in the Philippines but also create opportunities for American businesses and workers.

"This agreement is a testament to the enduring partnership between the United States and the Philippines," the White House said in a readout statement.

"It will not only strengthen our shared commitment to clean energy and energy security but also create jobs and opportunities for both our countries," the White House added.

The White House said the discussions began in November of last year with the goal of "supporting expanded cooperation on zero-emission energy and nonproliferation priorities."

It added that the deal aimed to help American and Filipino firms and establish a legal foundation for US exports of nuclear material and equipment to the Philippines.

Semiconductor

In addition to the civil nuclear agreement, the two countries also announced a new partnership to grow and diversify the global semiconductor ecosystem.

This partnership, which is part of the International Technology Security and Innovation (ITSI) Fund, will help create a more resilient and secure global supply chain for semiconductors, which are critical components in a wide range of electronic devices.

"This partnership will help create a more resilient, secure, and sustainable global semiconductor value chain," the White House said.

During a roundtable meeting with the US' Semiconductor Industry Association here, Marcos said the electronics and semiconductor industries are among the top priority areas for his administration.

"You can depend on partners in the Philippines that we are ready to work with you. From the government, the Department of Trade and Industry, the Board of Investments, the Philippine Economic Zone Authority will all be at the forefront," Marcos said.

"From the private sector, we have the Semiconductors and Electronics Industries in the Philippines Foundation, represented today by the Chairman and some of its member-companies. Another is the Private Sector Advisory Council or the PSAC, the members of whom come from different private sector groups," he added.

The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, Republic Act 11534, according to Marcos, can provide incentives for up to 40 years to highly desired projects with a minimum investment capacity of PHP50 billion (roughly equivalent to USD1 billion) or at least 10,000 jobs created.