The Philippines is pushing to finalize a framework agreement under the US-led Pax Silica initiative by the end of the year, with the goal of establishing New Clark City as a hub for artificial intelligence (AI) and semiconductor manufacturing.
Department of Finance Secretary Frederick D. Go expressed optimism about the initiative, stating that it is a priority for the country. He hopes to sign the agreement within the year, as the Philippines joined Pax Silica in April to strengthen technology supply chains and counter China's growing technology manufacturing sector.
The Pax Silica initiative has 23 signatories, and the Philippines is developing a 1,618-hectare AI-native industrial hub within New Clark City in Tarlac to support the country's bid to join the AI supply-chain ecosystem.
The facility will serve as the location for the Pax Silica Coordination Office, facilitating collaboration among technology firms, research institutions, and government agencies. This designation could pave the way for the establishment of facilities that manufacture semiconductors, chips, and other advanced technology products, according to Secretary Go.
The Philippines' workforce is seen as a key factor in attracting foreign investment, with Secretary Go noting that Taiwan-based Foxconn will serve as the anchor investor for the planned technology hub. Foxconn is one of the world's largest electronics manufacturers and a prominent supplier for companies like Apple and Sony.
The Pax Silica initiative complements the development of the Luzon Economic Corridor (LEC), a trilateral initiative aimed at improving connectivity across Luzon's key economic areas. The partnership has expanded to include eight countries, with Canada providing a $2 million grant to support the initiative.
The Bases Conversion and Development Authority (BCDA) expects to break ground for the first phase of the development within the first two years, marking a significant step towards establishing New Clark City as a major hub for AI and semiconductor manufacturing.
