US, Philippines plan 4,000-acre economic zone to boost supply chains

The United States and the Philippines have announced plans to establish a 4,000-acre economic security zone in Luzon to strengthen supply chains and boost industrial capacity under the Pax Silica initiative.

The planned site, located within the Luzon Economic Corridor, is envisioned as an industrial hub aimed at accelerating production of key inputs for allied supply chains, particularly in semiconductors, electronics and critical minerals.

The Philippines formally joined Pax Silica on 16 April, a US-led initiative involving 13 other countries focused on linking economic security with national security.

Under the framework, the proposed zone will serve as an investment acceleration hub for manufacturing, designed to align with market demand, host-country strengths and the evolving needs of partner nations.

Ceferino S. Rodolfo, undersecretary of the Department of Trade and Industry and managing head of the Board of Investments, signed the declaration marking the Philippines’ participation in the initiative.

Officials said the partnership aims to deepen cooperation in critical industries, including semiconductors and electronics, while attracting private sector investments.

The Philippines joins other Pax Silica signatories, including Australia, Finland, India, Israel, Japan, Qatar, South Korea, Singapore, Sweden, the United Arab Emirates, the United Kingdom and the United States, with more countries expected to follow.

The initiative coincides with the 80th anniversary of diplomatic relations between the United States and the Philippines, with both sides reaffirming commitments to strengthen economic and security ties.