Pax Silica hub in New Clark City to get governing framework by November
BCDA President and CEO Joshua M. Bingcang said the agency aims to sign a governing framework for the Pax Silica hub in New Clark City, Tarlac by November.
Source: BusinessWorld Philippines · August 19, 2026 at 12:43 PM · AI-assisted report
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MANILA, 19 AUGUST 2026 —
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BCDA President and CEO Joshua M. Bingcang said the agency aims to sign a governing framework for the Pax Silica hub in New Clark City, Tarlac by November.
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Speaking at the Kapihan sa Manila Bay forum on Wednesday, Bingcang said negotiations between the Philippines and the United States on the terms of the hub are ongoing. The framework, which covers commercial, technical and legal aspects, is not yet set in stone, he said.
“That is something that we want, but negotiations can always take longer,” Bingcang said. “(The target signing) is not set in stone. As long as the two parties come up with a mutually agreed arrangement, it should be a win-win.”
He cited comments by US Under Secretary of State for Economic Affairs Jacob Helberg that sovereignty over any Pax Silica-related development would reside with the host country.
The Philippines is one of 24 signatories to the US-led Pax Silica initiative, which seeks partnerships in chip manufacturing, AI hardware and data centers. The country is building a 1,619-hectare AI hub in New Clark City that will focus on critical components for AI infrastructure, Bingcang said.
The hub will be purely commercial with no defense-related activities and no hyperscale data centers, he added. To avoid straining Luzon’s power supply, the project will have its own independent power and utilities. Rainwater collected in impounding tanks will supply the hub’s water needs.
Financial assistance and livelihood programs will be provided to communities affected by the project, Bingcang said. The hub’s incentives will fall under Republic Act No. 7227 (Bases Conversion and Development Act of 1992) and RA No. 12066 (CREATE Act).
Critics have raised concerns about the hub’s heavy energy and water requirements, potential environmental damage and possible displacement of local communities. The government has defended the project, saying it could position the Philippines as a global player in high-value tech manufacturing.
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