WASHINGTON, D.C. — The Philippines and the United States have announced a landmark partnership to build the first AI-native industrial acceleration hub, spanning 4,000 acres in Clark and strategically located within the Luzon Economic Corridor.
The hub will host industrial facilities for critical minerals processing, semiconductors, advanced manufacturing, and artificial intelligence (AI).
Designed as a future-ready platform, the project positions the Philippines at the forefront of next-generation global supply chains, enabling the country to move from resource extraction into higher-value, technology-driven manufacturing.
The partnership is anchored on the Pax Silica initiative, a network of trusted partners promoting a transparent global governance framework for secure, resilient, and innovation-driven silicon supply chains—covering critical minerals, semiconductors, advanced manufacturing, and AI.
It also builds on the recently signed Philippines–United States memorandum of understanding on cooperation in critical minerals development, signaling the country’s push to move into higher-value segments of global technology supply chains while strengthening industrial and export competitiveness.
Finance Secretary Frederick Go described the partnership as a major step toward transforming the Philippines’ role in global trade and technology ecosystems.
“The Philippines is ensuring that our mineral resources and strategic location are not simply supporting global industries from the margins but are actively harnessed to build the industries of the future,” Go said.
Trade and Industry Secretary Ma. Cristina A. Roque said the AI industrial hub supports the implementation of the Philippine Semiconductor and Electronics Industry Roadmap by strengthening upstream supply security while enabling expansion into higher-value downstream activities.
“The AI-native industrial acceleration hub reinforces our semiconductor and electronics industry roadmap by linking our critical minerals advantage with our established strengths and by opening pathways toward higher value and advanced manufacturing,” Roque said.
“The Philippines is already a vital player in the global electronics and semiconductor value chain. The initiative will significantly expand Philippine exports, not just in volume, but in sophistication, value, and strategic relevance,” she added.
In 2024, the Philippines accounted for 25.41 percent of global nickel exports, supported by reserves estimated at 444 million metric tons.
Philippine mineral exports rose from US$6.20 billion in 2024 to US$7.62 billion in 2025, underscoring growing global demand. The hub is expected to ensure that these resources undergo further domestic processing and value addition.
The initiative also strengthens the country’s appeal as an investment destination.
The United States ranked among the top sources of foreign direct investment (FDI), with net inward US FDIs reaching US$162.9 million from January to October 2025, a 91 percent increase year-on-year. Approved US investments also surged, reflecting growing confidence in the Philippines’ industrial and policy direction.
“The partnerships have been forged. Now comes the work,” said Bases Conversion and Development Authority President and Chief Executive Officer Joshua M. Bingcang.
“We will put the Philippines at the center of the global AI supply chain, not at its edges. The 4,000-acre AI-native industrial acceleration hub in the Luzon Economic Corridor is a statement of where this nation is headed: toward AI, toward advanced manufacturing, toward genuine economic sovereignty,” he added.
“And at the heart of all of this are Filipino workers, engineers, and families whose lives will be transformed by the opportunities this zone will create. BCDA is proud to be the platform on which that future is being built.”
The creation of the AI-native industrial acceleration hub, along with a coordination platform, forms part of a broader strategy to anchor the Philippines in emerging global technology ecosystems—driving industrial upgrading, export expansion, job creation, and long-term economic resilience. PR
