The planned Pax Silica development in New Clark City will focus primarily on semiconductor and other industrial activities rather than hyperscale data centers, the Bases Conversion and Development Authority (BCDA) said, clarifying reports that the project could become a major energy-intensive data center hub.
BCDA president and CEO Joshua Bingcang said data centers, if established within the Pax Silica site, would mainly support semiconductor companies operating there and would not be large hyperscale facilities serving global customers.
“We will not put up data centers here. It will be for something which the New Clark City is really built for — predominantly, it will be for industrial use,” Bingcang said during a briefing in New Clark City, Tarlac on Friday, Aug. 7.
Bingcang said major data centers that may eventually be developed in New Clark City would be separate from the Pax Silica initiative.
The distinction comes as the government positions the planned development as a site for semiconductor companies and other businesses supporting the growing global demand for AI hardware.
Development of the first phase could begin within three to five years, covering about 500 hectares of the planned 1,620-hectare site.
“We see this as a long-term (investment). The first phase will be around 500 hectares. We see that in three to five years,” Bingcang said.
Full development is expected to span about 30 years. The government projects that investments associated with the initiative could eventually help raise Philippine exports to around $200 billion.
The Philippines recorded merchandise exports of $84.48 billion in 2025, with electronics and semiconductors accounting for a major share.
Pax Silica is a US-led international initiative aimed at developing trusted supply chains for technologies underpinning artificial intelligence, including semiconductors and critical minerals.
Department of Trade and Industry undersecretary and Board of Investments managing head Ceferino Rodolfo said the Philippines joined Pax Silica, which now involves about 23 countries, to help move its semiconductor sector toward higher-value activities and generate more value from locally sourced minerals.
“For the Philippines’ case, we are here because we would like to add value to the activities that we currently have in the Philippines. For example, for the minerals that we are able to export, we would like to add more value to the minerals that we are exporting largely in unprocessed form. For our semiconductor industry, we would like to move up the value chain,” Rodolfo said.
The government’s strategy calls for reducing reliance on exports of raw or minimally processed minerals while attracting more sophisticated semiconductor activities as demand for chips and computing infrastructure for AI grows.
Rodolfo said participation in Pax Silica is non-binding, allowing countries to withdraw from the initiative. He argued, however, that membership could give the Philippines access to investments, technology and innovation arising from cooperation among participating economies.
“That’s why there is a need for a coordinated effort for investments. It’s non-binding but we share the same principles and you are branded as a trusted partner,” he said. — Joann Villanueva (PNA)
