The US-led Pax Silica artificial intelligence hub in Central Luzon is expected to start site development within three to five years, covering roughly 500 hectares of the 1,620-hectare project.
Bases Conversion and Development Authority (BCDA) President and CEO Joshua Bingcang said the first phase of the project aims to build out the industrial infrastructure needed to attract semiconductor firms and AI-related businesses. Full operations are projected to span a 30-year period, with the potential to raise the country's merchandise exports to around USD200 billion. In 2025, exports hit a record USD84.48 billion, driven largely by semiconductors.
No hyperscale data centers
Bingcang pushed back on earlier reports that Pax Silica would be an energy-intensive project due to data center construction. He said any data centers built on the site would serve the semiconductor companies locating there, not hyperscalers serving 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," he said during a briefing in Tarlac. Bingcang added that major data centers are not part of the Pax Silica initiative and would be located outside the site.
Coalition strategy
The Philippines joined the Pax Silica coalition, which now includes around 23 countries, to move up the value chain in both minerals and semiconductors, according to Trade and Industry Undersecretary Ceferino Rodolfo. The country currently exports minerals largely in unprocessed form.
"For our semiconductor industry, we would like to move up the value chain," Rodolfo said.
The pact is non-binding, meaning members can exit if they choose. Rodolfo said leaving the coalition would cut off access to innovations developed within the group. "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.
Why this matters for IT and development professionals
For engineers and developers, the project signals a long-term shift toward higher-value semiconductor work in the Philippines rather than assembly and testing roles. The 30-year buildout means sustained demand for industrial automation, chip design, and AI infrastructure skills. The decision to keep hyperscale data centers out of the site also indicates the focus will be on manufacturing and on-device AI work, not cloud services. Professionals tracking the region should watch for procurement and hiring announcements as the first 500-hectare phase moves toward development.
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