Philippines to Address Pax Silica Concerns, Vows Farmer Aid and Transparency

The Bases Conversion and Development Authority (BCDA) has pledged to address concerns raised regarding the Philippines’ participation in the Washington-led Pax Silica initiative, a program aimed at developing secure AI and semiconductor supply chains. BCDA President and Chief Executive Officer Joshua M. Bingcang assured reporters that "all the concerns of all stakeholders" would be addressed, viewing the early emergence of these issues as beneficial to the consultation process. Specifically, the BCDA will extend financial assistance to farmers tilling land designated for the Pax Silica hub, emphasizing that "we will not leave them behind." Bingcang refuted reports of purchasing private land from nearby communities, clarifying that only government-owned land would be utilized for the AI hub development. The Philippines and the United States are collaborating on a 1,619-hectare AI-native acceleration hub within New Clark City in Tarlac, which forms part of Manila's contribution to the Pax Silica initiative. Launched in 2025, Pax Silica is a 24-country coalition designed to counter China's growing tech manufacturing sector by developing robust AI and semiconductor supply chains. However, the initiative has faced criticism concerning its potential impacts on the environment, local communities, and national interests. Bingcang clarified that the hub will focus on the development of manufacturing hubs for AI and chip semiconductors, not data centers, with the production of chips for devices like cellphones, laptops, and servers anticipated. Representatives from the private sector have called for greater scrutiny of Pax Silica. Sergio R. Ortiz-Luis, Jr., President of the Philippine Exporters Confederation, Inc., noted that the project is "moving faster than we're answering questions," highlighting the need for enhanced transparency on resource procurement, such as water and electricity, and safeguards to prevent displacement or adverse effects on host communities. Ferdinand A. Ferrer, President of the Philippine Chamber of Commerce and Industry (PCCI), welcomed questions related to the Pax Silica hub to ensure safeguards are in place. He indicated that several countries are interested in establishing wafer fabrication plants in the Philippines once the Luzon Economic Corridor and Pax Silica gain momentum, supporting the industry's push to upgrade the country's semiconductor capabilities from assembly, testing, and packaging to advanced manufacturing. The BCDA anticipates investments of up to $70 billion in the Pax Silica hub upon its full development. The Philippines and the U.S. are aiming to sign the governing framework for the Pax Silica AI hub by November. — Beatriz Marie D. Cruz Source: BusinessWorld Economy