High-Tech Manufacturing and Critical Minerals

The United States and the Philippines have announced plans to establish a high-tech manufacturing hub in the Philippines as part of a broader effort to shorten and diversify critical supply chains away from China. The move, announced in 2026, is aimed at building semiconductor, advanced electronics and other high-value production capacity on allied territory to reduce vulnerability to geopolitical disruptions and trade tension. The push is driven in part by stark market realities: China still controls roughly 70% of global rare earth production and dominates refining and processing of critical minerals, a concentration Washington views as a strategic risk to technology and defense supply lines.