The United States has entered an agreement with the Philippines to establish a 4,000-acre artificial intelligence-powered manufacturing hub on the island of Luzon, the Wall Street Journal reported Thursday.
The deal, part of the U.S.-led Pax Silica initiative, will give companies access to critical minerals and other key components used in electronics, curtailing China’s dominance over global supply chains.
“The current geography of the global supply chain is completely unsustainable,” stated Jacob Helberg, under secretary of state for economic affairs. “If you look at the whole supply chain stack, layer after layer, it is totally dominated by China.”
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What Does the US-Philippines Pax Silica Partnership Cover?
The manufacturing hub is still largely conceptual at this stage, but it is expected to operate under U.S. common law and will have diplomatic immunity. The U.S. will also occupy the site rent-free.
The factories planned to operate in the manufacturing hub will be highly automated, according to Helberg. U.S. companies participating in the initiative have the options to deploy American workers to the Philippines, or hire locally.
What Is Pax Silica?
Launched in December 2025, Pax Silica aims to unite allied nations to create a secure supply chain for semiconductors, artificial intelligence and other advanced technologies. It is also intended to drive innovation through collaboration and strengthen digital infrastructure.
In February, the Department of State introduced a pilot concierge service to streamline the process of acquiring American-made AI products for Pax Silica members.
Pax Silica signatories include Australia, India, Japan, South Korea, Singapore, Sweden, the United Arab Emirates and the United Kingdom, the Philippines New Agency reported.
