Development of the planned U.S.-led artificial intelligence (AI) and semiconductor hub in Central Luzon is expected to begin within three to five years, with the first phase covering about 500 hectares of the 1,620-hectare site.
Bases Conversion and Development Authority President and CEO Joshua Bingcang said Friday the project, known as Pax Silica, is a long-term investment intended to attract more semiconductor companies and businesses supporting the growing AI industry.
“We see this as a long-term (investment). The first phase will be around 500 hectares. We see that in three to five years,” Bingcang said during a briefing at New Clark City in Tarlac.
The entire development is expected to be completed over about 30 years and could help increase Philippine exports to around $200 billion.
The country recorded a record $84.48 billion in merchandise exports in 2025, with semiconductors accounting for a large share.
Pax Silica is intended to strengthen the Philippines’ position in the global AI supply chain by encouraging semiconductor companies and other AI-related industries to establish operations in the country.
Bingcang, however, clarified that the project should not be viewed as a plan to build massive data centers that serve global technology companies.
He said any data centers established within the development would primarily support semiconductor companies operating there.
“We will not put up data centers here. It will be for something which the New Clark City is really built for — predominantly, it will be for industrial use,” he said.
Major data centers, if developed, would not be part of the Pax Silica initiative and would be located elsewhere within the broader New Clark City master plan.
Trade and Industry Undersecretary and Board of Investments managing head Ceferino Rodolfo said the Philippines joined the Pax Silica coalition, which now has about 23 member countries, to increase the value of the country’s mineral and semiconductor industries.
For minerals, the goal is to process more resources domestically instead of exporting them largely in unprocessed form. For semiconductors, the government wants the industry to move into higher-value activities.
“For our semiconductor industry, we would like to move up the value chain,” Rodolfo said.
He said the coalition is non-binding, meaning member countries are not legally required to remain in it.
However, Rodolfo said leaving the initiative could mean losing access to future innovations and opportunities developed through the partnership.
“That’s why there is a need for a coordinated effort for investments. It’s non-binding but we share the same principles and you are branded as a trusted partner,” he said.
The government sees the initiative as a way to position the Philippines as a trusted investment destination as demand for AI-related technologies, semiconductors and critical minerals continues to grow.
