tech
US and Philippines move
The US and Philippines are moving “very, very quickly” on a 4,000-acre AI and supply chain hub in New Clark City, the first physical facility under the Pax Silica initiative. Under Secretary of State Jacob Helberg visited the site with American companies, while the Philippines rejected a US request for diplomatic immunity at the facility.
TL;DR
- The US and Philippines are fast-tracking the development of a 4,000-acre AI and supply chain hub in New Clark City.
- This hub is the first physical facility under the Pax Silica initiative, designed to secure AI and semiconductor supply chains among allied nations.
- The project aims to support emerging industries in AI, digital infrastructure, advanced manufacturing, and critical mineral processing.
- The Philippines rejected a US request for diplomatic immunity for personnel at the site, characterizing the arrangement as a 'normal commercial agreement'.
- The hub is part of a US strategy to reduce dependence on China's dominance in rare earth refining and semiconductor production.
- Challenges include ensuring investor 'durability and certainty' given the Philippines' six-year presidential term and addressing sovereignty concerns related to legal jurisdiction.
- The Philippines aims to leverage the hub to move up the semiconductor value chain from assembly and packaging to design and fabrication.
- The BCDA is targeting groundbreaking before the end of 2028, with the project facing typical infrastructure development delays.