In 2026, the Philippines and the United States announced plans to establish a 4,000-acre “Economic Security Zone” within the Luzon Economic Corridor under the US-led Pax Silica initiative. The proposed zone is intended to function as an AI- and semiconductor-focused industrial hub integrated into allied supply chains for critical minerals, advanced manufacturing, and artificial intelligence infrastructure.
The project is envisioned as a special economic zone with substantial foreign investment incentives and close strategic coordination between allied states. Supporters argue it would accelerate industrialisation, investment, and technological upgrading in the Philippines, while critics have raised concerns about sovereignty, labour, environmental costs, and geopolitical dependence on the United States.