The United States Department of State said the Pax Silica initiative, a 4,000-acre semiconductor and artificial intelligence hub planned for New Clark City, will operate within the legal requirements of both the Philippines and the United States.
The statement addresses a dispute that surfaced earlier this year over how the proposed hub would be governed. In May, Bases Conversion and Development Authority (BCDA) President Joshua Bingcang said US officials had requested that the zone operate under US law, with US personnel granted diplomatic immunity.
Philippine officials rejected the request, stating there would be no special arrangement for the project. Malacañang has since reiterated that the hub must follow Philippine laws on foreign investment, land use, taxation, and environmental protection, with President Ferdinand Marcos Jr. stating that the country will not surrender any territory to a foreign power.
In a virtual press briefing, Ambassador Heather Variava, senior advisor in the Bureau of Economic, Energy, and Business Affairs of the US State Department, told The Manila Times that American investments in the Philippines will prioritize high legal standards and tangible public benefit.
“We work within the parameters of our legal structures, so any agreements that we come to meet the legal requirements of both – in this case, both the United States and the Philippines,” Variava said.
Variava distinguished Pax Silica from the broader Luzon Economic Corridor, describing the latter as a separate initiative centered on infrastructure expansion rather than resource extraction. She said the goal is to add generating capacity, water supply, and infrastructure alongside the investments, rather than draw down existing local resources, with benefits reaching Filipinos through jobs and economic activity.
Pax Silica was launched in December 2025 as a US-led framework for coordinating semiconductor, artificial intelligence, and critical minerals investment among allied economies. The initiative now counts 13 member countries, including Australia, Japan, South Korea, Singapore, and the United Kingdom. The New Clark City site is intended to be the framework’s first dedicated hub.
Legal analysts who have reviewed the project’s structure note that Philippine participation in Pax Silica does not, on its own, create a separate legal jurisdiction within the country. Under this reading, the 1987 Philippine Constitution and existing statutes – including the BCDA Charter and the Investors’ Lease Act – continue to apply to activity within the zone.
The State Department did not provide a timeline for finalizing the agreements governing the hub’s operations.
