Foxconn, the Taiwan-based contract manufacturer that assembles the iPhone for Apple, is conducting due diligence and site inspections to anchor a technology hub in New Clark City, Tarlac, under the Philippines’ participation in the US-led Pax Silica Initiative.
The project would mark one of the largest single commitments yet from a global electronics manufacturer to Philippine soil. The Department of Finance (DOF) said it hopes to sign a framework agreement locking in Foxconn’s role within the year, a step that would move the country closer to hosting semiconductor and AI hardware assembly rather than remaining limited to back-office services and raw material exports.
The proposed hub covers roughly 1,619 hectares within the Luzon Economic Corridor and is designed around artificial intelligence, data centers, and the critical minerals used in electronics manufacturing. Formally known as Hon Hai Technology Group, Foxconn is Apple’s primary contract manufacturer and would serve as the anchor locator for the site.
“I hope we can get something signed within the year,” DOF Secretary Frederick D. Go told reporters during a media roundtable on July 7.
Go said the initiative reflects a broader shift toward high-tech industry in Luzon, one built around AI, data centers, and the minerals that power modern electronics. He said the hub’s success will depend on a reliable power supply and an efficient logistics network, preferably backed by clean energy sources.
The Philippines joined the Pax Silica Initiative in April 2026 as its 13th member. The coalition, launched in December 2025, has since grown to 24 members and economies, including Argentina, Chile, Costa Rica, El Salvador, Germany, Greece, Kazakhstan, the Netherlands, Panama, and the European Union. The alliance was formed to secure supply chains for semiconductors, AI hardware, and critical minerals among partner economies.
Economic planners have estimated the hub could draw between $40 billion and $70 billion in foreign direct investment over its lifecycle. The DOF has outlined three anticipated effects of securing Foxconn as anchor investor: a shift from raw mineral exports toward higher-value semiconductor and AI hardware assembly; a pull effect drawing component suppliers, testing laboratories, and research institutions into the surrounding corridor; and access to fiscal incentives under the CREATE MORE Act, supported by planned power and logistics links through the Port of Subic Bay.
Local electronics firms may find opportunities in data center hardware and co-design work tied to the hub. Industry observers cited in local coverage noted that the project’s outcome will depend on the availability of skilled labor and consistent power supply, and on whether the Philippines can move beyond lower-tier manufacturing roles over time.
Taiwan has separately expressed interest in cooperating with the Philippines following its own admission to the Pax Silica coalition. The next milestone is the signing of the framework agreement between the Philippine government and Foxconn, which officials have said they aim to complete before the end of 2026.
