By Benjamin Cuaresma
MANILA, Philippines — The Bases Conversion and Development Authority (BCDA) has pledged to address concerns surrounding the country’s participation in the United States-led Pax Silica initiative, assuring stakeholders that public consultations, environmental safeguards, and assistance to affected communities will remain part of the project’s implementation.
BCDA President and Chief Executive Officer Joshua M. Bingcang said the government’s consultation process is ongoing and welcomed the public discussion now taking shape over the proposed artificial intelligence and semiconductor manufacturing hub inside New Clark City.
“We assure that we will address all the concerns of all stakeholders,” Bingcang told reporters on Thursday. “It’s good that these issues are coming out now because they form part of the consultation process.”
Bingcang also assured farmers currently cultivating portions of the government-owned property that they would receive financial assistance should the project move forward.
He clarified that the land designated for the development belongs to the government and dismissed reports suggesting the BCDA is acquiring private properties from nearby communities.
“The property is government-owned. There are farmers who were previously allowed to cultivate the land, and we will provide assistance. We will not leave them behind,” he said.
The BCDA chief also sought to dispel misconceptions about the project’s scope, emphasizing that the proposed hub is not intended to host large-scale data centers.
Instead, the facility will focus on advanced manufacturing for artificial intelligence technologies and semiconductor production.
Bingcang said the project aims to manufacture high-value electronic components, including chips used in smartphones, laptops, servers, and other AI-driven technologies.
The Philippines and the United States are jointly developing a 1,619-hectare AI-native acceleration hub inside New Clark City, Tarlac, as Manila’s flagship contribution to the Washington-led Pax Silica initiative.
Launched in 2025, Pax Silica is a coalition of 24 countries seeking to establish secure and resilient artificial intelligence and semiconductor supply chains while reducing dependence on China-dominated technology manufacturing.
The BCDA has projected that the hub could attract as much as $70 billion in investments once fully developed.
Philippine and US officials are targeting the signing of the project’s governing framework by November.
Despite broad support for strengthening the country’s semiconductor industry, business groups have urged the government to provide clearer details on the project’s long-term impact.
Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis Jr. said major questions remain unanswered, particularly regarding the availability of water, electricity, and other critical infrastructure needed to support the massive industrial complex.
He also called for safeguards to protect host communities from possible displacement.
“I am not against it. I simply have questions that need to be answered,” Ortiz-Luis said.
Philippine Chamber of Commerce and Industry President Ferdinand A. Ferrer echoed the call for transparency, saying public concerns should be viewed as an opportunity to strengthen the project rather than discourage it.
According to Ferrer, at least two foreign countries have already expressed interest in establishing wafer fabrication facilities in the Philippines once the Pax Silica hub and the Luzon Economic Corridor become fully operational.
Industry leaders see Pax Silica as a potential catalyst for upgrading the Philippines’ semiconductor sector from its traditional strengths in assembly, testing, and packaging toward higher-value chip manufacturing and advanced fabrication.
If successfully implemented, the initiative is expected to position the country as a more competitive player in the rapidly expanding global AI and semiconductor supply chain while creating new investment and employment opportunities.
ia/xf
