THE Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi) has backed the Pax Silica initiative, saying it could strengthen the country’s position in global semiconductor, electronics, artificial intelligence, and advanced manufacturing value chains.
The project — a United States-led international economic and technological coalition launched in December 2025 with 24 member countries including the Philippines — should serve as the flagship manufacturing ecosystem of the Luzon Economic Corridor, rather than merely another industrial estate, Seipi said, noting that it could integrate advanced manufacturing, research and development, logistics, digital infrastructure and supporting industries.
“As global supply chains diversify, the Philippines has a timely opportunity to move beyond assembly and testing toward higher-value manufacturing, innovation, and technology development,” Seipi said in a position paper.
The group urged the government to prioritize transport, digital and utility infrastructure and explore small modular and micro-modular nuclear reactors to provide reliable and affordable power.
It also called for expanded engineering education and workforce development, stronger domestic supply chains, modernized customs procedures and an economic security zone framework to streamline regulatory coordination.
These measures could help the Philippines expand into advanced semiconductor manufacturing, integrated circuit design, AI infrastructure, advanced packaging, automation, equipment servicing and front-end manufacturing, Seipi said.
To maintain the country’s investment competitiveness amid changing international tax rules, Seipi proposed complementing the Qualified Domestic Minimum Top-up Tax with a performance-based Qualified Refundable Tax Credit.
It said the tax credit should be aligned with the Strategic Investment Priority Plan and the Tatak Pinoy Act to encourage research and development, advanced manufacturing, and local value creation.
Seipi likewise sought legislation institutionalizing the Semiconductor and Electronics Industry Advisory Council to provide long-term policy certainty.
The group said Pax Silica should prioritize local hiring, skills development and worker training while encouraging Filipino professionals overseas to return.
Seipi also called for environmental safeguards, including sustainable water management, recycling and surface water harvesting to protect nearby communities.
It said investments in Pax Silica must comply with the Constitution and Philippine laws to ensure these are viable, mutually beneficial, and respectful of national sovereignty.
