Pax Silica: Two locations are better than one

While there are pockets of resistance, the debate over Pax Silica has been trapped also in a false choice, Clark or nothing. That has to end. The truth is, the Philippines does not need to pick one site. We need two. Clark should lead, and Cebu should follow. Together, these two locations can turn the country from a chip importer into a semiconductor power.

Again, let’s start with the facts. Pax Silica is not a company. It is a US-led economic security initiative launched in December 2025 to build allied supply chains for semiconductors, AI infrastructure, and critical minerals. The Philippines joined in April, 2026 as the 13th signatory. 

In Clark, the BCDA has already signed an MOU with Korean and Japanese firms for a 1,618-hectare Economic Security Zone in New Clark City. More than 50 companies, including trillion-dollar tech firms, have expressed interest. Phase 1 requires US$10 billion. Long term investment could reach US$40 billion to US$70 billion. At full buildout, BCDA projects 130,000 to 190,000 direct jobs, 90% of which are for Filipinos.

Clark makes sense as the anchor. It has contiguous land, airport access, and Subic as logistics partner. The workforce is already there. And because this is a geopolitically sensitive project, proximity to Manila and national agencies matters. This is where we put the heavy, capital-intensive pieces like wafer fabrication, advanced packaging, R&D, and the hyperscale AI data center. Clark is the hub.

But the hub alone is not enough, another location is necessary. Cebu, the entire province, is the right complement. Yes, a complement. Why? For one, Cebu cannot replicate Clark hectare-for-hectare. Land is tighter and water is scarcer. However, Cebu has something Clark does not have, an existing electronics ecosystem. MEPZ 1 and 2 already host semiconductor and Electronic Manufacturing Services (EMS) firms. Not only that, Danao City has it too. Obviously, therefore, the engineering talent is there. Also, the international port and MCIA give direct export routes to ASEAN, Australia, and the US West Coast.

So, the question is not “Clark vs Cebu.” The question is “Clark and Cebu, doing what?” The answer is a Clark-Cebu corridor. Let Clark be the core — the place for fabs, large data centers, and headquarters functions. Let Cebu be the spoke — the place for back-end semiconductor assembly and test, advanced manufacturing, and a regional data center serving Southern Philippines and ASEAN.

Is that economically feasible? Yes. In fact, it’s how every serious tech nation does it. Taiwan has Hsinchu and Tainan. The US has Arizona and Texas. That’s how to diversify risk, shorten logistics, and spread jobs. Fifty companies are interested in Pax Silica. They will not all fit in Clark. Some will prefer Cebu’s existing supply chain and port access. Having two sites also gives investors business continuity against typhoons, earthquakes, and power issues.

The numbers support it. The DICT’s AI master plan targets US$30 billion in data center investment by 2033 and 1.5 gigawatts of capacity. One 400MW data center in Clark does not cover the country. A second facility in Cebu helps close the digital divide and gives Visayas and Mindanao firms low-latency access. On jobs, adding Cebu means we don’t force all engineers to move to Luzon.

What about the challenges? Power and water. Both sites must build dedicated power and not rely on the national grid. Both must opt for water recycling and desalination. 

Truth to be told, we have a narrow window to anchor high-value manufacturing. We should take it, and we should take it twice. Negotiate hard on technology transfer, local suppliers, and environmental safeguards. But then build.

A Clark-Cebu corridor gives us scale and reach. Clark gives us global credibility and size. Cebu gives us agility and ASEAN access. Together, we will be able to transform from exporting people to exporting products designed and made by Filipinos.

This is not about favoring one region over another. This is about national strategy. Let’s stop debating whether Pax Silica should happen. Let’s start planning how Pax Silica can happen in Clark and in Cebu. That is how we double the benefit, double the jobs, and double our chances of becoming Asia’s next semiconductor hub.