Philippines as the next Taiwan? : Philippines, US to Establish Industrial Hub for Supply Chain Security

The Philippines and the United States are joining forces to build a 4,000-acre industrial hub in New Clark City, north of Manila, as part of a Washington-led push to secure global AI and semiconductor supply chains.

The project follows Manila’s entry into Pax Silica, a U.S.-driven initiative now backed by 13 countries—including Australia, Finland, India, Qatar, South Korea, and Singapore—designed to safeguard critical minerals, advanced manufacturing, and data infrastructure.

Anchored in the Luzon Economic Corridor, the hub is envisioned as a platform for allied manufacturing, strengthening shared supply chains in semiconductors, electronics, and other strategic goods. The corridor itself is already the focus of trilateral infrastructure investments by the Philippines, Japan, and the U.S.

The Bases Conversion and Development Authority (BCDA), which oversees New Clark City, is assessing land availability for the project. BCDA Chairman Hilario Paredes noted the hub would be developed as a commercial facility, leveraging state-owned land once part of a former U.S. military reservation.

The move underscores the deepening ties between Manila and Washington under President Ferdinand Marcos Jr., as the Philippines positions itself as a key partner in U.S. efforts to counter China’s influence in the South China Sea.