By Brian Campued
Philippine officials have clarified that the first artificial intelligence (AI) industrial hub to be built in New Clark City under the Pax Silica initiative of the United States will operate in accordance with existing Philippine laws.
This, as Bases Conversion and Development Authority (BCDA) President and CEO Joshua Bingcang, BCDA Chairperson Jerry Marasigan, and Department of Trade and Industry (DTI) Undersecretary Perry Rodolfo joined US Under Secretary of State for Economic Affairs Jacob Helberg for the unveiling of the proposed site for the AI hub in Capas, Tarlac on Monday.
Bingcang stressed that no diplomatic immunity was granted to the US government for the development and construction of the 4,000-acre AI hub.
“That’s their request but we did not agree to that… There are two laws that will govern the transaction here—the Investors Lease Act and the BCDA Law, which is confirmed by the Department of Justice,” Bingcang said in a media interview on the sidelines of the site inspection.
“It will be treated as a regular business development contract, no special arrangement to be accorded to the US government,” he added.
With a two-year planned construction, the AI hub, once operational, is expected to strengthen the Luzon Economic Corridor by supporting the emerging AI industry, digital infrastructure, and advanced manufacturing.
The DTI, meanwhile, allayed concerns that the proposed facility will become a war production hub, stressing that the Pax Silica initiative opens another opportunity for the Philippines to boost the development of critical minerals into “green-tech” technology.
The project also aims to tap the country’s reserves of nickel, copper, chromite, and cobalt—minerals critical to global supply chains.
“Itong Pax Silica na ito, it’s really for securing supply chains para sa AI tech. Ili-link mo yung critical minerals, tapos yung supply of these critical minerals and rare earth towards your AI ecosystem. So hindi ito talaga—kung iniisip ng iba bala, missile, hindi ito yon… This is really to secure the supply chain for your AI ecosystem,” Usec. Rodolfo said.
Helberg, for his part, brought American investors who are interested in supporting the building of the AI hub.
“Every single company who’s here is interested in potentially being a part of this historic effort… We need to figure out and finalize the sectors that will get prioritized around an anchor tenant and based on that, we will build out an ecosystem of companies that contribute to the master tenant activities,” the U.S. official said.
Helberg underscored the need to ensure investors’ protection so that the “billions of dollars” they will spend as capital expenditure will “outlive administrations” in both the Philippines and the U.S.
“There needs to be an element of durability and certainty. And so that’s where our focus is really gonna be on predictability, certainty, speed, and scale,” he said.
Pax Silica is the U.S. Department of State’s flagship program, launched in December 2025, aimed at strengthening AI and supply chain security. The Philippines joined the initiative with 14 other countries in April 2026. (with report from Patrick de Jesus / PTV News)
-jpv
