Philippines Eyes Tech Value Chain Boost with Pax Silica Initiative

The Washington-led Pax Silica initiative could help the Philippines move up the global technology value chain by supporting semiconductor production, critical mineral processing and emerging technologies, the Department of Foreign Affairs (DFA) said. Foreign Affairs Secretary Ma. Theresa P. Lazaro said the Philippines’ participation in the initiative could help establish the country as a trusted hub for technology-related activities. “Our engagement in Pax Silica reflects our determination to climb the global technology value chain,” Ms. Lazaro said at the Manila Strategy Forum on Wednesday. “In today’s world, economic diplomacy is a national defense by another name.” The initiative could support the Philippines’ plans to develop an artificial intelligence chip manufacturing hub in New Clark City, Tarlac, which spans 1,619 hectares. The government wants to position the country beyond its role as a supplier of raw materials by expanding into semiconductor packaging, critical mineral processing and other emerging technologies. Ms. Lazaro said the Philippines’ economic security should complement its defense capabilities as the country seeks to boost its strategic partnerships. “National security and economic security are inseparable,” she said. “To be security strong, the Philippines must also be economically strong,” she said, adding that Manila seeks to bring its alliances into the “geo-economic domain” through the Luzon Economic Corridor. The Philippines’ participation in Pax Silica has drawn scrutiny from lawmakers and other groups over its potential environmental impact and demand for power and water. The Senate agreed on Sept. 8 to conduct a Committee of the Whole review of the initiative after several senators sought an inquiry. Senator Juan Miguel F. Zubiri moved for the review, which Senator Sherwin T. Gatchalian seconded. Mr. Zubiri said the Senate should examine both the potential benefits and concerns surrounding the project rather than limit its review to environmental or economic issues. Senators Maria Imelda Josefa Remedios R. Marcos, Ana Theresia “Risa” N. Hontiveros-Baraquel, Paolo Benigno “Bam” A. Aquino IV, Rafael T. Tulfo, and Robinhood C. Padilla have filed or backed measures seeking scrutiny of the initiative. Mr. Gatchalian has expressed support for the project while raising concerns about its potential effects on energy supply, the environment and intellectual property. The Philippines’ participation also comes as Manila strengthens its defense ties with the US. The two countries marked the 75th anniversary of their Mutual Defense Treaty this year and held the 41st iteration of the Balikatan exercises, involving about 17,000 troops from seven countries, including Australia, Canada, France, Japan, New Zealand and the US. Ms. Lazaro said the Mutual Defense Treaty remains a foundation of Philippine security, but credible deterrence cannot depend solely on military capabilities. The DFA has framed Pax Silica as part of the Philippines’ broader effort to boost economic and technological security while deepening ties with strategic partners. Source: BusinessWorld Nation