US eyes Taiwan role in Luzon corridor's 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, 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, said Taiwanese companies are already represented at the Luzon Economic Corridor Investment Forum in Manila.
"Given the leading role that Taiwan plays in those sectors, I think there's huge scope of opportunity," Variava said at a virtual press briefing on September 10, as transcribed, when asked about Taiwan's potential participation in semiconductors, advanced manufacturing and AI.
She added that Philippine partners would welcome greater Taiwanese investment and pointed to the existing economic and people-to-people links between Taiwan and the Philippines.
"I think there's huge scope for further collaboration and including Taiwan in the initiative," Variava said.
The Luzon Economic Corridor is a partnership of the Philippines, United States and Japan aimed at accelerating investment across Subic, Clark, Manila and Batangas. It is aimed at developing transport and logistics, energy, digital infrastructure and advanced manufacturing.
A broader goal cited is to move goods, energy, data and people more efficiently across Luzon, linking the region more closely to global markets. Variava said the corridor already covers an area accounting for about 50% of Philippine gross domestic product.
U.S. officials said the current push is on mobilizing private-sector investment rather than treating the corridor as a collection of government projects.
Among the projects under development are a freight rail system linking major corridor hubs, a feasibility study for a nickel and cobalt processing facility, improvements to Subic Bay port infrastructure and new digital connectivity projects.
U.S. Trade and Development Agency Deputy Director Thomas Hardy said the agency was nearing completion of its feasibility work on a nickel and cobalt processing facility intended to bolster the Philippines' ability to process critical minerals.
USTDA has also financed a feasibility study for a Subic-Clark-Batangas-Manila railway and announced new support for the expansion of port facilities at Subic Bay and a nationwide public Wi-Fi network.
Variava said advanced manufacturing is another focus, citing the Philippines' existing capabilities in semiconductors, automobiles and aerospace.
Taiwan's interest in the corridor predates the U.S. officials' remarks, having expressed in a 2024 report that it was considering joining the corridor. It initially identified smart agriculture as one area for cooperation. Foreign Minister Lin Chia-lung said at the time that Taiwan could play a "pivotal role" in the corridor and had begun talks with the United States and other partners on possible participation.
Variava, meanwhile, said several countries had already joined the initiative, while the European Union and Spain became the latest participants.
She did not announce a formal arrangement for Taiwan or identify specific Taiwanese investments tied to the corridor. She said, however, that Taiwan's possible role around its strength in industries the corridor is trying to attract, including semiconductors, advanced manufacturing and AI.
The corridor's digital component is also aimed at building what U.S. officials describe as safe, secure infrastructure, while its energy component is intended to improve generation, grid reliability and the investment environment for new power projects.
The U.S. officials also sought to play down concerns that the corridor could lose momentum after President Ferdinand Marcos Jr. leaves office in 2028.
Asked whether Manila and Washington had discussed making the initiative resilient beyond the next Philippine presidential election, Variava pointed to projects and policies that had 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.
Variava also said the Luzon Economic Corridor itself had carried over between U.S. administrations and was embraced by President Donald Trump's administration.
"So I think we do see longevity running through both the corridor initiative and many of our investments here in the Philippines," she said.
The Philippines is one of the United States' oldest treaty allies in Asia. As for trade and development, Hardy noted the agency's work with the Philippines for more than 30 years.
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