Pax Silica site development eyed in 3 to 5 years

MANILA, Philippines — Site development for the planned US-led artificial intelligence hub Pax Silica in Central Luzon may begin within three to five years, with the first phase covering about 500 hectares of the 1,620-hectare site.

“We see this as a long-term [investment]. The first phase will be around 500 hectares. We see that in three to five years,” Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Joshua Bingcang said during a briefing in New Clark City, Tarlac, on Friday.

Full operations are expected within 30 years, with the project projected to help raise the country’s exports to about $200 billion.

In 2025, merchandise exports reached a record-high $84.48 billion, driven largely by semiconductors.

The Pax Silica project is envisioned to help turn the Philippines into an AI hub by attracting more semiconductor companies and firms catering to AI-related requirements.

Bingcang also clarified earlier reports describing Pax Silica as an energy-intensive project because of data centers.

He said any data centers that may be established would serve semiconductor companies locating at the site and would not be hyperscalers or major data centers catering to global clients.

“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,” Bingcang said.

He added that New Clark City’s master plan was designed to accommodate several industries. If major data centers are built, these would not be part of the Pax Silica initiative and would be located outside the project site.

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During the same briefing, Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo said the Philippines joined the coalition, which now includes around 23 countries, to strengthen the value proposition of the country’s minerals and semiconductor industries.

Rodolfo said each participating country has its own reasons for joining the initiative amid rising demand for AI and related requirements.

“For the Philippines’ case, we are here because we would like to add value to the activities that we currently have in the Philippines. For example, for the minerals that we are able to export, we would like to add more value to the minerals that we are exporting largely in unprocessed form. For our semiconductor industry, we would like to move up the value chain,” he said.

Rodolfo said the Philippines’ objectives may differ from those of other participants but converge with the coalition’s broader goals.

He also said the pact is nonbinding, allowing participating countries to end their commitments if they choose.

Asked what the Philippines could lose if it leaves the coalition, Rodolfo downplayed the possibility, saying a country outside the initiative would not have access to the innovations developed through it.

“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. /dm