Manila: Site development for the US-led artificial intelligence (AI) hub, Pax Silica, in Central Luzon is set to commence within three to five years. The initial phase will cover approximately 500 hectares of the total 1,620-hectare site.
According to Philippines News Agency, Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Joshua Bingcang mentioned in a briefing at New Clark City in Tarlac that the project is viewed as a long-term investment. The full operational capacity of the AI hub is expected to be realized over a 30-year period, potentially increasing the country's exports to around USD 200 billion.
In 2025, the Philippines achieved a record-high in merchandise exports, amounting to USD 84.48 billion, primarily due to the semiconductor industry. The Pax Silica project aims to position the Philippines as a significant AI hub, attracting more semiconductor firms and businesses catering to AI requirements.
Bingcang addressed previous reports about Pax Silica being an energy-intensive project due to data centers, clarifying that any data centers constructed will serve the semiconductor companies within the site, rather than large-scale global data centers. He emphasized that New Clark City's master plan is designed primarily for industrial purposes, and major data centers will be established outside the 4-acre site of Pax Silica.
During the briefing, Trade and Industry Undersecretary and Board of Investments managing head Ceferino Rodolfo highlighted that the Philippines joined a coalition of about 23 countries. This coalition aims to enhance the value proposition for domestic minerals and the semiconductor industry, driven by the growing demand for AI.
Rodolfo elaborated that the Philippines intends to add value to its current activities, particularly in the minerals and semiconductor sectors, by moving up the value chain. He noted that while reasons for joining the coalition vary among the countries, they are united by common objectives.
Although the coalition is non-binding, Rodolfo stressed the importance of being a member, as exiting the coalition would mean losing access to its innovations. He underscored the need for coordinated investment efforts and the value of being recognized as a trusted partner within the coalition.
