The Philippines is pursuing a more distributed artificial intelligence-driven industrial strategy that could spread advanced manufacturing, chip design, critical-mineral processing, and computing infrastructure across the country rather than concentrate the emerging technology ecosystem in New Clark City.
Trade Undersecretary Ceferino Rodolfo said the strategy would build on existing industrial initiatives, with Pax Silica serving as one platform for attracting investors and financing.
“It’s really an AI-driven industrialization node. It’s not just Pax Silica,” Rodolfo said.
Under the emerging framework, New Clark City would focus on advanced manufacturing, while Metro Manila would anchor integrated-circuit design. Critical-mineral processing would be developed in resource-rich areas, while AI computing infrastructure and data centers would be located where power, water, and digital capacity are adequate.
Rodolfo said AI compute facilities would not necessarily be placed in Clark, addressing concerns over the heavy power and water requirements of data centers.
The broader strategy could gain momentum as the Bases Conversion and Development Authority (BCDA) targets a framework or master agreement with a US government entity as early as November.
Rodolfo said the agreement would provide a foundation for developments and locators linked to the New Clark City component, although individual projects would remain subject to Philippine laws, regulatory requirements, and other safeguards.
“We’re optimistic to be able to sign,” Rodolfo said, adding that the government would move forward “without sacrificing” safeguards and while addressing community concerns.
Beyond investment promotion, Pax Silica could also give Philippine projects access to US pre-investment assistance, including feasibility studies through the US Trade and Development Agency and potential financing from the US International Development Finance Corp.
The distributed approach reflects a key constraint in AI industrialization: technology investment cannot be scaled sustainably without matching it with reliable energy, water, digital infrastructure, skilled workers, and suitable industrial sites.
