The Philippines and the US are racing to seal a framework agreement for the proposed Pax Silica technology hub in New Clark City before year-end, a move that could unlock one of Southeast Asia’s biggest platforms for artificial intelligence, semiconductor, and advanced manufacturing investments.
Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Joshua Bingcang said negotiations with the US State Department have gained momentum following the Pax Silica Summit in Washington last month, with both sides already exchanging draft agreements covering the 1,600-hectare technology estate.
“We are now in the midst of negotiations,” Bingcang said during ANC Business Outlook on July 15.
He said both parties expect to complete the framework agreement within the next two to three months. The target is to have it ready for announcement should US President Donald Trump attend the ASEAN Summit in the Philippines in November, when the two countries celebrate 80 years of diplomatic relations.
Bingcang said negotiations have also cleared two potentially thorny issues after both sides resolved concerns involving nationality and immunity provisions.
The Philippines has emerged as the frontrunner among the 35 countries participating in the US-led Pax Silica initiative, with other member states seeking updates from the Philippine delegation during the Washington summit, he added.
Attention is now shifting from negotiations to building the ecosystem needed to support AI-driven industries.
Bingcang said the US International Development Finance Corp. has approved funding for a feasibility study for a proposed 1,200-megawatt liquefied natural gas terminal and power plant to help meet the enormous electricity demand of AI factories, semiconductor plants, and hyperscale data centers. BCDA is also pursuing a dedicated fuel pipeline linking Subic and Clark, alongside embedded renewable energy facilities to strengthen long-term power security.
At the same time, discussions are continuing with prospective investors, including Foxconn and several US technology firms. BCDA is also working with universities, the Technical Education and Skills Development Authority, and international partners to develop an AI-ready workforce, laying the groundwork for what it hopes will become the country’s next major engine of high-value investments and technology exports.
