BCDA: $200B in export potential from Pax Silica

Launched in December 2025, Pax Silica is a United States-led initiative aimed at strengthening supply chains for advanced technologies critical to artificial intelligence and other emerging industries. Priority sectors include critical minerals, semiconductors, infrastructure, energy and logistics.Twenty-four countries have so far signed up as members, including Japan, South Korea, Singapore, Taiwan, India, Australia, the United Kingdom, the European Union and the Philippines — whose main contribution is a 1,620-hectare government property at New Clark City in Tarlac.Bingcang said the project would be developed in phases, with construction to begin after two years of planning.The first phase will cover 500 hectares of the 1,620-hectare site and could take three to five years to develop. Some 10 to 20 companies are expected to start construction as early as 2028.Initial investments are projected at about $10 billion (roughly P600 billion), with additional funding expected as development progresses, including the construction of manufacturing plants and water infrastructure.Bingcang said semiconductor manufacturing would be among the main drivers of exports and could help the Philippines realize the project’s $200-billion revenue potential.Pax Silica is also projected to generate P60 billion in lease income over 25 years and P68 to P75 billion in potential annual tax revenues. It could likewise create 130,000 to 190,000 direct jobs and another 500,000 to 800,000 indirect and induced jobs, Bingcang said.Amid criticism and warnings from various quarters, Trade Undersecretary Ceferino Rodolfo clarified that Pax Silica is a nonbinding declaration, since the Philippines has joined the initiative because it aligns with the country’s national interests.