Philippines, US Ink AI Hub Deal; Manila Stresses Local Law Compliance

The Bases Conversion and Development Authority (BCDA) is set to sign a master agreement with a US partner agency to establish a proposed artificial intelligence (AI)-native hub under the Pax Silica partnership, a trade official said. Trade Undersecretary Ceferino S. Rodolfo told reporters last week that the agreement will ensure that locators expanding here under Pax Silica will be governed by Philippine laws. While the Department of Trade and Industry has yet to confirm the identity of the US agency signing the framework deal for Pax Silica-related development, the US International Development Finance Corp. has expressed interest in financing major US-backed projects in the Philippines, including the planned Pax Silica hub in New Clark City and the Luzon Economic Corridor. The framework, which is currently being completed, will be the basis for the development of projects under the Pax Silica umbrella. “We’re optimistic that the framework (will be signed) while addressing the concerns and ensuring that there are sufficient safeguards,” he said. In its negotiations, Manila seeks to ensure that all Pax Silica developments will comply with Philippine law, including the Export Development Act, the BCDA Act, the Environmental Compliance Certificate process, and labor and environmental regulations, Mr. Rodolfo said. The Philippines is one of 24 signatories to the Washington-led Pax Silica initiative, which seeks to build a global supply chain for artificial intelligence (AI) chip manufacturing. The Philippines and US have consequently agreed to develop a 1,619-hectare AI-native industrial hub in New Clark City, Tarlac, which will specialize in semiconductor manufacturing. — Beatriz Marie D. Cruz