The United States (US) and the Philippines are planning to establish a 4,000-acre, or a nearly 1,619-hectare (ha), industrial hub in Luzon aimed at strengthening supply chains for critical inputs, according to the US Department of State.

In an April 16 fact sheet, the US State Department said the proposed site—located within the Luzon Economic Corridor (LEC)—will be designated as an “Economic Security Zone,” described as a new and first-of-its-kind model for “artificial intelligence (AI)-native investment acceleration hubs” being developed under the Pax Silica Initiative.

In a separate April 16 media note, the US State Department said the Philippines has formally joined the Pax Silica initiative, launched by the US and 13 other nations, highlighting what it described as a “growing geopolitical consensus that economic security is national security and national security is economic security.”

The Philippine government’s participation was formalized by Department of Trade and Industry (DTI) Undersecretary and Board of Investments (BOI) Managing Head Ceferino S. Rodolfo, who signed the declaration reflecting the country’s entry into Pax Silica.

The Pax Silica Initiative, as outlined in the statements, is a broader strategy aimed at transforming how supply chains are organized by linking industrial hubs across partner economies. It seeks to build “a genuine system capable of competing with—and ultimately displacing—the concentrated supply chains on which the world currently depends,” through interconnected manufacturing sites, logistics corridors, and shared financial frameworks. The US State Department also described Pax Silica as a “positive-sum partnership of nations who want to remain competitive and prosperous.”

Under this framework, the planned Luzon hub will serve as “a staging point for a purpose-built platform for allied manufacturing,” where industrial activities are shaped by demand, comparative advantages, and the evolving needs of the Pax Silica network. The site—the first of its kind—is being offered by the Philippines as an Economic Security Zone to “surge production for inputs vital to US supply chains.”

The two governments are looking to establish joint governance frameworks to support the long-term development of the zone, while ensuring “sovereign alignment and shared upside as it scales.” The initiative is also expected to combine US institutional expertise—such as “internationally enforceable contracts, transparent regulatory standards, and expert dispute resolution”—with the Philippines’ workforce, natural resources, and strategic location at the crossroads of Indo-Pacific trade.

The US State Department noted that the Philippines holds reserves of key minerals including nickel, copper, chromite, and cobalt, which are increasingly critical to global supply chains. It added that the Luzon hub is envisioned as the first in a broader network of Economic Security Zones spanning multiple continents, forming “a constellation of integrated manufacturing sites, logistics corridors, and shared financial instruments” across partner economies.

The Philippines is the 13th signatory to Pax Silica, joining Australia, Finland, India, Israel, Japan, Qatar, Singapore, South Korea, Sweden, the United Arab Emirates (UAE), the United Kingdom (UK), and the US, with additional signatories expected to follow.