Japan, the US, and the Philippines are expanding their partnership to strengthen supply chains for artificial intelligence and semiconductors, focusing on a hub on the Philippines' Luzon Island [1, 2]. The three countries plan to develop energy industries at the site, including liquefied natural gas (LNG) projects, under the Luzon Economic Corridor initiative launched in 2024 [1, 2].
The US intends to create an approximately 16 square kilometer "economic security zone" on Luzon Island to attract AI-related industries [2]. Japan is encouraging its domestic AI companies to collaborate with US firms and relocate operations to the Philippines hub. It also aims to attract satellite and data center businesses to the area [2]. Given the Philippines' vulnerability to natural disasters, Japan seeks participation from Japanese AI firms that provide disaster prevention services [2].
In May 2026, Canada committed CAD 2 million in funding to the Luzon Economic Corridor, with involvement from other countries such as South Korea, Australia, the UK, and France [2]. This funding supports the development of the regional economic and infrastructure project initiated by Japan, the US, and the Philippines in 2024 [2].
The three countries will host an investment forum in September 2026 on Luzon Island to promote opportunities in AI and semiconductor fields [1, 2]. The event may become an annual platform to foster business collaboration and partnerships among the participating nations [2].
In late May 2026, Japan’s Prime Minister and the Philippine President reaffirmed cooperation on security and economic security, highlighting the strategic ties underpinning the Luzon Economic Corridor project [2].
