New Clark City has been designated as the site of a planned 1,619-hectare economic security zone under a United States-led initiative, positioning the Tarlac site as the Philippines’ anchor for artificial intelligence (AI) and advanced manufacturing.
Under this project, New Clark City will host the Pax Silica Coordination Office that will bring together technology firms, research institutions and government agencies to support the development of an AI-focused industrial ecosystem.
It is envisioned as a site for facilities for critical minerals processing, semiconductor manufacturing and AI-driven industrial operations.
First ‘Golden Node’
In a statement on Monday, the Bases Conversion and Development Authority (BCDA) said it would grant a two-year grace period on lease payments for the property, treating it as an in-kind contribution to support the initiative.
Lease rates from the third year onward will be set under a separate agreement.
With the partnership, New Clark City site will serve as the first “Golden Node” under Pax Silica, a new model for AI-native industrial hubs designed to accelerate investment and integrate participating countries into the global supply chain.
“By establishing this Golden Node, we stand to position New Clark City as a vital link in the global supply chain for advanced technologies and next-generation manufacturing,” said BCDA president and CEO Joshua Bingcang.
“On the ground, this will translate into more quality job opportunities for Filipinos and greater participation of local enterprises in the growing innovation-driven economy across the globe,” Bingcang added.
Finance Secretary Frederick Go said the initiative also reflects a shift in how the Philippines positions its resource base.
“The Philippines is ensuring that our mineral resources and strategic location are not simply supporting global industries from the margins, but are actively harnessed to build the industries of the future,” Go said.
Meanwhile, Trade Secretary Cristina Roque pointed out that the project aligns with the country’s semiconductor and electronics roadmap by linking upstream mineral resources to downstream manufacturing.
This, as semiconductors and electronics remained the Philippines’ top export segment in 2025, with $49.64 billion in shipments last year. In 2024, the Philippines accounted for 25.41 percent of global nickel exports, with mineral exports rising to $7.62 billion in 2025.
Vital player
“The Philippines is already a vital player in the global electronics and semiconductor value chain,” Roque said, adding the initiative would expand exports “in sophistication, value, and strategic relevance.”
But for Danilo Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc., while the move is “good” for the industry, it is “too early” to determine its effect on exports.
Some groups have likewise raised concerns over the project’s implications for land use and resource extraction.
In a joint statement, members of the progressive Makabayan bloc composed of ACT Teachers Rep. Antonio Tinio, Gabriela Women’s Party Rep. Sarah Elago and Kabataan Rep. Renee Louise Co said the initiative goes beyond economic development and instead serves military-linked supply chains.
The lawmakers said that Pax Silica, along with a broader US-Philippines critical minerals framework, would create a pipeline from resource extraction to semiconductor and electronics production, aiming to reduce US dependence on China-linked materials.
“This is fundamentally about war production, not neutral industrial development,” they said, adding that advanced chips and electronics produced under such arrangements could be used in military technologies, including drones, missiles and surveillance systems.
They also questioned the economic benefits of the plan, saying the Philippines may again be confined to lower-value roles in global supply chains, such as assembly, testing and packaging, while higher-value activities like design and technology development remain under foreign control.
“We end up providing cheap labor while foreign firms retain technology, control and profits,” they said —WITH A REPORT FROM JOANNA ROSE AGLIBOT INQ
No comments:
Post a Comment