The Philippines could begin attracting investments from the proposed Pax Silica hub in New Clark City as early as late 2026 or early 2027, but only if the national government moves quickly to prepare the necessary infrastructure and regulatory groundwork, according to the Makati Business Club (MBC).
Pax Silica is a US-led coalition of more than 30 countries formed to secure supply chains for critical minerals, semiconductors, energy, and logistics. The Philippine government has designated a 1,619-hectare site in New Clark City, Capas, Tarlac, as a hub for artificial intelligence and advanced manufacturing under the initiative. Officials from the Bases Conversion and Development Authority (BCDA) have previously estimated the facility could generate up to ₱180 billion in annual revenue and create close to 200,000 jobs once fully operational.
MBC chair Edgar Chua said the timeline for realizing that investment depends on how decisively the government acts in the coming months. “If we get our act together, it sets the stage for significant investments to come in,” Chua said of Pax Silica and the broader Luzon Economic Corridor initiative. “If they see that we are really preparing our country, then it would help drive confidence and investment.”
Chua said the government should establish the required legal frameworks and supporting infrastructure early, while also communicating clearly with the public about what Pax Silica involves, particularly given concerns that large-scale investment could strain the country’s power and water systems. Some lawmakers, including members of the Makabayan bloc, have separately raised concerns that the project’s energy demands could push up electricity rates and put pressure on the national grid.
Chua also called on the government to identify which industries it intends to attract to the hub, so schools and universities can begin preparing graduates with the relevant skills in advance. Without these steps, he warned, the Philippines risks losing the opportunity to competing countries. Philippine Ambassador to the United States Jose Manuel Romualdez previously said other Asian countries were prepared to step in should Manila “drop the ball” on the project.
“Our story is a country of missed opportunities, not because of our people – our people are so resilient – but because of poor governance,” Chua said. He added that the MBC is coordinating with the American Chamber of Commerce of the Philippines and the US Embassy in Manila to help advance the project. MBC vice chair Jaime Augusto Zobel de Ayala, who also chairs Ayala Corp., has said the group is looking to identify opportunities within the US-led initiative.
The Philippines and the United States are targeting November for the signing of a framework agreement on Pax Silica. Once finalized, the project’s first phase could break ground as early as 2028, with full development expected to unfold over roughly three decades.
