The Department of Foreign Affairs (DFA) reaffirmed its support for the Pax Silica initiative on Wednesday, calling it one of the tools the Philippines is using to strengthen its economic security.
Speaking at the Center for Strategic and International Studies (CSIS) Manila Strategy Forum 2026 in Parañaque, DFA Secretary Ma. Theresa Lazaro said that Philippine participation in the coalition shows the country’s “determination to climb the global technology value chain.”
The initiative points toward a shift away from low-value manufacturing roles and toward higher-paying, higher-skill work in semiconductor packaging and critical mineral processing – sectors that, if realized at the scale officials describe, could open new categories of jobs beyond the electronics assembly work the Philippines has long been known for.
“The Philippines will not remain a mere exporter of raw materials or low-tier assembly. We are positioning our country’s as a secure, trusted hub for semiconductor packaging, critical mineral processing, and emerging technology,” Lazaro said.
“In today’s world, economic diplomacy is a national defense by another name,” she added.
Lazaro said at least seven countries have expressed interest in exploring opportunities in the Philippines through Pax Silica, a figure she first cited at a CSIS talk in June.
“[N]ow there are seven countries that are very interested. And I think there’s another – more countries that are interested, and hopefully the infrastructure, it could be built to help this high-tech industry, Al and many other issues,” she said.
Site development for the planned US-led artificial intelligence hub in Central Luzon is expected to begin within three to five years, covering roughly 500 of the site’s 1,620 hectares. Full operations are projected within a 30-year period, a timeline officials say could push the country’s exports to around USD200 billion.
Lazaro said Manila continues to build economic ties through the Luzon Economic Corridor (LEC) while diversifying its relationships to avoid “over-dependence” on any single partner, capital source, or market.
“A nation with diversified relationships possesses greater diplomatic maneuverability,” she said. “When conventional routes narrow, our diplomacy opens fresh windows across the globe. While deepening cooperation with traditional treaty allies and close strategic partners – such as Japan, Australia, Canada, the Republic of Korea, New Zealand, and others – we are actively expanding our diplomatic footprint,” she added, citing the European Union, the United Kingdom, and countries across South and Central Asia, the Middle East, Latin America, and Africa.
Lazaro has previously said combining defense and economic security is “essential” for the Philippines amid what she described as “mounting pressures” in its maritime domain.
At the forum, CSIS Senior Fellow and Freeman Chair Amb. Edgard Kagan said Manila has used its “web of minilaterals” to deter potential economic coercion tied to its position in the South China Sea.
“I think that if you compare what has happened in recent years with Second Thomas Shoal, one thing that has been a surprise is that China has not been more coercive economically towards the Philippines,” Kagan said. “And I would argue that part of that is because the Philippines has been very effective in developing this web of minilaterals, which creates the sense that there actually would be support in the event of that happening. So, I think it’s very effective.”
No timeline was given for construction to formally break ground on the Central Luzon site, and officials have not specified which of the seven interested countries are furthest along in discussions.
