Struggle for Supply Chain Dominance: Philippines Joins U.S. "Silicon Peace" Initiative to Co-Develop Industrial Hub and Strengthen Supply Chain Security

In a statement issued on April 16, the U.S. Department of State said that following Manila’s accession to the Washington-led "Silicon Peace Initiative" (Pax Silica), aimed at securing artificial intelligence and semiconductor supply chains, the two countries will jointly build a 4,000-acre (1,620-hectare) industrial center.

According to Reuters, the Philippines has become the 13th country to join the "Silicon Peace Initiative." The initiative is a flagship project of the U.S. Department of State in the areas of artificial intelligence and supply chain security, a key pillar of the Trump administration’s economic strategy designed to reduce dependence on competitors and strengthen cooperation among allies. Other signatory nations include Australia, Finland, India, Qatar, South Korea, and Singapore.

As introduced by the U.S. Department of State, under the framework of the "Silicon Peace Initiative," the U.S. and Philippines announced plans to establish this industrial center along the Luzon Economic Corridor in the Philippines. This center will be the first of its kind, with the Philippines providing it as an economic security zone, aiming to boost production of critical raw materials vital to U.S. supply chains. The center will serve as a dedicated platform for related manufacturing industries and an investment acceleration hub, with specific industrial activities adaptable to market demands, the host country’s comparative advantages, and evolving needs of the "Silicon Peace Plan" network.

The U.S. Department of State further stated in a release: "The two allied nations are committed to strengthening shared supply chains in critical minerals, semiconductors, electronic products, and other goods."

The Luzon Economic Corridor is a strategic economic hub encompassing the capital city of Manila and surrounding regions with advanced industry and manufacturing sectors. The Philippines, Japan, and the United States have jointly pledged increased infrastructure investments in this corridor under a trilateral framework agreement.

The industrial center will be located in New Clark City, a flagship planned metropolis in the Philippines situated north of Manila, owned and developed by the government through the Base Conversion and Development Authority (BCDA). The authority's head said officials will assess whether sufficient contiguous land is available for the project. The envisioned hub will function as a commercial facility.

The land where New Clark City is located was originally part of a U.S. military reservation. After U.S. forces withdrew from Philippine bases in 1991, the area was transferred to the Philippine government.

Reuters reported that under President Ferdinand "Bongbong" Marcos Jr., Manila’s ties with Washington have grown increasingly close, with President Marcos showing greater pro-U.S. orientation.

Annual joint military exercises titled "Balikatan" involving the Philippines, the United States, and several partner nations will take place from April 20 to May 8 across multiple locations throughout the Philippine archipelago. Over 17,000 soldiers will participate in this exercise—the largest and most complex training program to date—expanding beyond bilateral drills to broader multinational cooperation.

Source: rfi

Original: toutiao.com/article/1862727738176538/

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