May 24, 2026
Jeffrey D. Bean, Fellow for Technology Policy, ORF America was quoted in an article by Sam Beltran of South China Morning Post on the United States’ plans to build an U.S.-backed AI industrial hub in the Philippines that would also be governed by U.S. law:
The presence of US investors at the site visit did not yet amount to concrete commitments, said Jeffrey Bean, a technology fellow at the Observer Research Foundation America in Washington.
“There have not been any public commitments yet, which would suggest they are still evaluating. So we have to wait to see more specifics about which companies and what industries will make investments.”
The hub could attract investments in AI centres, semiconductors, advanced manufacturing and critical minerals-related supply-chain coordination, according to analysts.
But potential investors were likely interested in stronger legal protections because of uncertainties over political stability as well as infrastructure and bureaucratic challenges.
“Whether it is in semiconductor manufacturing or critical mineral refining and processing, ease of doing business and the regulatory environment do shape these capex-intensive decisions,” Bean said.
But domestic backlash against granting the US special protections will remain a barrier.
“Pushing for exceptional extraterritorial treatment on a legal basis … is going to be a near no-go for just about any sovereign state, especially democracies like the Philippines that have a colonial legacy with the United States,” Bean said.