US Eyes Taiwan Role in Luzon Economic Corridor for Chip, AI Push

MANILA, Philippines — The United States sees "huge scope" for Taiwanese participation in the Luzon Economic Corridor, particularly in semiconductors, advanced manufacturing, and artificial intelligence (AI), as Manila and its partners seek to draw more high-technology investment into Luzon. U.S. Ambassador Heather Variava, a senior adviser at the State Department's Bureau of Economic, Energy and Business Affairs, stated that given Taiwan's leading role in these sectors, there is "huge scope of opportunity" for its involvement. Philippine partners would welcome greater Taiwanese investment, building on existing economic and people-to-people links between Taiwan and the Philippines. Variava indicated that including Taiwan in the initiative would open further avenues for collaboration. The Luzon Economic Corridor is a partnership between the Philippines, the United States, and Japan, aimed at accelerating investment across Subic, Clark, Manila, and Batangas. The initiative seeks to develop transport and logistics, energy, digital infrastructure, and advanced manufacturing. The corridor already covers an area accounting for approximately 50% of the Philippines' gross domestic product (GDP), with a broader goal of facilitating more efficient movement of goods, energy, and data, and strengthening linkages to global markets. U.S. officials emphasized that the current push is on mobilizing private-sector investment rather than treating the corridor as a collection of government projects. Projects under consideration include a freight rail system connecting major corridor hubs, a feasibility study for a nickel and cobalt processing facility, improvements to Subic Bay port infrastructure, and new digital connectivity projects. Thomas Hardy, Deputy Director of the U.S. Trade and Development Agency (USTDA), noted that the agency is nearing completion of its feasibility work for a nickel and cobalt processing facility designed to enhance the Philippines' capacity for critical mineral processing. USTDA has also funded a feasibility study for a Subic-Clark-Batangas-Manila railway and announced new support for expanding port facilities at Subic Bay and a nationwide public Wi-Fi network. Variava highlighted advanced manufacturing as another focus, referencing the Philippines' existing capabilities in semiconductors, automobiles, and aerospace. Taiwan's interest in the corridor predates these remarks, having expressed in a 2024 report its consideration of joining, initially identifying smart agriculture as a potential area for cooperation. Taiwan's Foreign Minister Lin Chia-lung had stated that Taiwan could play a "pivotal role" and had begun talks with the U.S. and other partners regarding possible participation. Variava mentioned that several countries have already joined the initiative, with the European Union and Spain being the latest participants. She did not announce a formal arrangement for Taiwan or specific investments but reiterated Taiwan's potential role based on its strengths in key industries the corridor aims to attract, such as semiconductors, advanced manufacturing, and AI. The corridor's digital component aims to build safe and secure infrastructure, while its energy component focuses on improving generation, grid reliability, and the investment environment for new power projects. U.S. officials also addressed concerns about the corridor's momentum beyond President Ferdinand Marcos Jr.'s term ending in 2028. Asked about discussions on making the initiative resilient beyond the next Philippine presidential election, Variava pointed to projects and policies that have already survived changes in government on both sides. She cited the redevelopment of the former shipyard in Subic Bay, which began under President Rodrigo Duterte and continued under Marcos, as an example of project longevity. Variava also noted that the Luzon Economic Corridor initiative itself has carried over between U.S. administrations and was embraced by the Trump administration. "So I think we do see longevity running through both the corridor initiative and many of our investments here in the Philippines," Variava said. The Philippines is one of the United States' oldest treaty allies in Asia. Regarding trade and development, Hardy noted USTDA's work with the Philippines for over 30 years. Source: Philstar Business