Manila: The Philippines has joined the United States-led Pax Silica initiative, a strategic coalition among 14 states to create a secure supply chain for semiconductors and artificial intelligence (AI) technology. Trade Undersecretary Ceferino Rodolfo, also the Managing Head and Vice Chairperson of the Board of Investments, signed the declaration signifying the Philippines' joining of Pax Silica on April 17.

According to Philippines News Agency, the US Embassy in Manila on Friday announced that the Philippines and the US will establish a 4,000-acre industrial zone in the Luzon Economic Corridor (LEC). This zone is set to be the 'first AI-native industrial acceleration hub under Pax Silica,' serving as a staging point for a purpose-built platform for allied manufacturing. It will act as an investment acceleration hub, where specific industrial activities can be shaped by market demand.

Situated within the Luzon Economic Corridor, the zone is expected to leverage the Philippines' geographic centrality in the Indo-Pacific region. It will capitalize on the country's young and technically skilled workforce, as well as its deepening alliance with the United States, as stated by the US Department of State. This economic security zone will provide host-country comparative advantages and support the evolving needs of the Pax Silica network.

The US positions Pax Silica as a 'positive-sum partnership of nations' aiming to enhance AI and supply chain security. With the Philippines as the thirteenth signatory, the initiative includes Australia, Finland, India, Israel, Japan, Qatar, South Korea, Singapore, Sweden, the United Arab Emirates, the United Kingdom, and the US. Additional signatories are expected to join in the future.