US & Philippines to Create 4,000 Acre Manufacturing Zone
The manufacturing zone
The US State Department said in a statement that the hub is expected to serve as a purpose-built platform for allied manufacturing.
The currently conceptual site will serve as an “investment acceleration hub” where the specific industrial activities taking place will be shaped by market demand, host-country comparative advantages and the “evolving needs of the allied network”.
Situated within the Luzon Economic Corridor, the State Department said the Zone can leverage the Philippines’ geographic centrality in the Indo-Pacific as well as “its young and technically skilled workforce”.
This site, the first of its kind, is being designated by the Philippines as an Economic Security Zone, a new model for AI-native investment acceleration hubs being developed under the Pax Silica Initiative.
The Wall Street Journal reports that the administration will ask companies to put forward proposals to compete for a spot in building out the hub, giving priority to bids that will move critical minerals processing and manufacturing away from Chinese suppliers.
China and supply chains
Pax Silica is the Department of State’s effort on AI and supply chain security which spans advanced manufacturing and AI infrastructure with a goal to “reduce coercive dependencies”.
As the US ramps up manufacturing and production of these facilities in line with new technological developments, concerns have been raised about how dependent US supply chains and manufacturing is on China.
Undersecretary of State for Economic Affairs Jacob Helberg told the Wall Street Journal: “The current geography of the global supply chain is completely unsustainable.”



