US Teams Up with the Philippines to Secure Strategic Technology Supply Chains

The United States is assessing that a long-term agreement on an economic security zone with the Philippines will be reached soon. This was stated by US Deputy Secretary of State for Economic Affairs Jacob Helberg in an interview with Reuters on Thursday, 21 May 2026. The agreement forms part of expanding a technology supply chain alliance known as Pax Silica, Washington’s initiative to secure strategic technology supplies amid intensifying global rivalry.

“I expect the United States and the Philippines will reach an agreement sooner rather than later,” Helberg said. “There is a very big momentum behind this,” he added.

The Philippines officially joined Pax Silica last month. Helberg said the alliance now has 15 member countries, up from seven founding members in September last year. “We are likely to reach 16 members by the end of next month, as we may add one or two members in the next four weeks,” he said.

The framework pushes member nations to build a more integrated and geopolitically secure supply chain. Under the agreement signed last month, the US and the Philippines have two years to work out the details of the economic security zone. The two countries will also identify priority industrial sectors to be included in the zone.

Yet there are still some sensitive issues in the negotiations. Bloomberg had previously reported that the Philippines has not yet approved a US request for diplomatic immunity for the zone. The zone covers 4,000 acres (about 1,620 hectares). It is accompanied by representation from more than a dozen US companies, including 8VC, Agility Robotics, Joby Aviation, and Valar Atomics. Foxconn chairman Young Liu was also seen in the delegation, according to a photo posted on X. Foxconn is the world’s largest contract electronics manufacturer and a major supplier to Apple. According to Helberg, interest from US companies in the project is high. “Although it is still early, there is substantial interest from both the companies present and other US firms,” he said.