DoF prioritizes signing of Pax Silica deal within the year

THE PHILIPPINES is hoping to sign a framework agreement under the US-led Pax Silica initiative before the end of the year as it seeks to position New Clark City as a hub for artificial intelligence (AI) and semiconductor manufacturing.

“From what I understand, this is a priority. So, I hope we can get something signed within the year,” Department of Finance (DoF) Secretary Frederick D. Go said at a press briefing on Tuesday.

The Philippines joined Pax Silica in April, a US-led initiative aimed at strengthening technology supply chains and countering China’s growing technology manufacturing sector.

According to the US State Department, the Pax Silica initiative has 23 signatories, including the Philippines.

Under the initiative, the Philippines is developing a 1,618-hectare AI-native industrial hub within New Clark City in Tarlac to support the country’s bid to join the AI supply-chain ecosystem.

The facility will host the Pax Silica Coordination Office for technology firms, research institutions, and government agencies.

Mr. Go said Clark’s designation as a Pax Silica site could pave the way for the establishment of facilities that manufacture semiconductors, chips and other advanced technology products.

“I think why they want to locate in the Philippines is always because of our workforce,” he said.

Asked about private sector interest, Mr. Go said Taiwan-based Foxconn is to serve as the anchor investor for the planned technology hub.

Foxconn is one of the world’s largest electronics manufacturers and is best known as a major supplier for companies such as Apple and Sony.

Mr. Go said the Pax Silica initiative also complements the development of the Luzon Economic Corridor (LEC).

The LEC is a trilateral initiative among the Philippines, the United States and Japan aimed at improving connectivity across Luzon’s key economic areas, particularly Subic Bay, Clark, Metro Manila and Batangas. The partnership has since expanded to include Australia, Canada, Denmark, France, Italy, South Korea, Sweden and the United Kingdom.

“Eight countries have already signed up, including Canada. And then Canada also announced that they’re giving us a $2 million grant to support this whole initiative of the Luzon Economic Corridor,” Mr. Go said.

In late April, the Bases Conversion and Development Authority (BCDA) said it expects to break ground for the first phase of the development within the first two years. — Justine Irish D. Tabile