‘Philippines, US may sign Pax Silica AI hub framework within 2026’

MANILA, Philippines — The Philippines and the United States are not expected to sign an agreement on the proposed Pax Silica artificial intelligence (AI) industrial hub during the Association of Southeast Asian Nations (ASEAN) Summit, but the Board of Investments (BOI) still expects the signing within the year.

“We’re hoping that within this year, we’ll be able to sign,” Trade Undersecretary and BOI managing director Ceferino Rodolfo told reporters on the sidelines of the ASEAN Investment Forum yesterday.

Rodolfo was referring to the framework agreement that will define industries to be located in the AI industrial hub to be developed in New Clark City in Tarlac.

“The discussions with the US Department of State continue to move forward extremely well. There are no substantive issues and we remain firmly on track for signing the master agreement,” he said.

If the agreement is signed within the year, he said that the proposed project would remain on track for the two-year development and master planning period.

“While there will be no announcement during the upcoming meeting between (US) President (Donald) Trump and President Marcos, this is simply a matter of timing. With ASEAN, APEC (Asia-Pacific Economic Cooperation) and several major initiatives occurring in close succession, we felt it would be better for the advanced manufacturing hub to have its own moment rather than compete within an already crowded diplomatic agenda,” Rodolfo said.

He also said that other key regional diplomatic and geopolitical initiatives deserve the dedication they merit during the ASEAN Summit.

Last week, US Ambassador Lee Lipton said that there are no plans to make an announcement on the Pax Silica Economic Security Zone during the ASEAN Summit, to be held on Nov. 15 to 17, in Manila.

He also said that decisions related to the proposed project will be made in consultation with the Philippine government.

Trump is set to attend the ASEAN Summit.

Back in July, Bases Conversion and Development Authority (BCDA) president and CEO Joshua Bingcang said that the government was hoping to sign the framework agreement with the US this month given Trump’s visit.

The AI hub is being developed following the Philippines’ move to join the US-led Pax Silica initiative last April.

The goal is to build a secure and resilient supply chain for AI and semiconductors.

With semiconductors and electronic products being the Philippines’ top exports, the government expects the proposed project to be a game-changer for the country in terms of attracting investments in new and emerging technologies and advanced manufacturing and in job creation.

However, the project has faced opposition from various groups due to concerns on its environmental impact, huge water and power requirements and possible displacement of farmers.

Rodolfo said that the BCDA continues to hold consultations with stakeholders on the project.