Jake Saunders, Port Vila, Vanuatu
Taiwan is monitoring a planned U.S.-backed industrial zone in the Philippines under the Pax Silica initiative and sees potential for semiconductor and artificial intelligence cooperation, while remaining cautious about whether the project will deliver on its ambitions.
Foreign Minister Lin Chia-lung said the proposed 4,000-acre Economic Security Zone in New Clark City, Tarlac, could open opportunities for collaboration. “When the United States proposes the economic security zone in New Clark City, I think Taiwan and the Philippines can seek to build an industrial cooperation,” Lin said, citing semiconductors, AI, drones, shipbuilding and undersea cables.
Taiwan is not a formal signatory to the U.S.-led Pax Silica Declaration, launched in December 2025 to secure supply chains for critical minerals, semiconductors and AI technologies. It has endorsed the principles through a January joint statement with the United States and sent a delegation to a June summit in Washington.
The Philippines joined the initiative in April. The New Clark City site is intended as an AI-focused hub for minerals processing, semiconductor-related manufacturing and advanced electronics, aimed at reducing reliance on China-dominated supply chains.
Taiwanese officials and analysts note the island’s strengths in advanced chip production could complement Philippine mineral resources. Yet they point to a long regional record of special economic zones and high-tech hubs that have underdelivered due to infrastructure gaps, regulatory hurdles and slow private investment.
Framework talks continue months after the announcement. Manila rejected U.S. proposals for American legal jurisdiction or diplomatic immunity at the site. Technical assessments were expected later this year, with groundbreaking targeted before the end of 2028. Specific tenants and firm investment commitments remain unclear.
Taiwanese observers say success will hinge on concrete progress rather than announcements, and that Taipei will continue exploring practical cooperation through existing channels while judging the project by what actually materializes.
