Speaking at the Mandaue Chamber of Commerce and Industry Business Summit on Aug. 13, Go said the Philippines was fortunate to have been invited to join Pax Silica, becoming the 24th member of the alliance.
“We are number 24. In short, we almost were not invited to the party. By the time we joined, 23 had already joined,” Go said. “This is a consortium of several countries getting together to build an industrial supply chain to build AI technology.”
The Secretary urged businessmen to help stop the spread of what he called “fake news” and instead gain a better understanding of the initiative.
Pax Silica, he explained, seeks to build a logistics ecosystem supporting the technology industry, including the manufacture of cell phones, laptops, computers and other hardware, while positioning the Philippines as part of the global AI ecosystem.
Go, a Cebu native, was invited to keynote the annual business summit organized by MCCI, which has more than 500 member-companies spanning manufacturing, real estate, logistics, food processing and services.
His pitch for Pax Silica was particularly relevant to Cebu, which hosts several economic zones and ports and has thriving information technology and manufacturing sectors. These strengths could position the province as a high-value node in the global technology supply chain, particularly in chip assembly, packaging and logistics.
Economic corridor
Pax Silica, launched by the US State Department in 2025, is aimed at building secure supply chains for AI semiconductors, critical minerals and advanced manufacturing. The Philippines joined the alliance in April this year.
In the Philippines, the flagship proposal covers about 4,000 acres, or 1,620 hectares, within the Luzon Economic Corridor at New Clark City in Tarlac. It is envisioned as a hub for AI, advanced manufacturing and logistics.
“Let me just address some of the fake news because I really don't know why there's so much fake news. There is not a single Aeta in the 1,600 hectares. There is no farmer that is being displaced in the 1,600 hectares. It's absolutely not true,” Go stressed.
He said Pax Silica covers only about 1 percent of the “millions of hectares” encompassed by the Luzon Economic Corridor, a major economic and infrastructure initiative stretching from Subic Bay in the north to Batangas in the south.
Freight traffic
The Luzon Economic Corridor was launched in April 2024 by the Philippines, US and Japan as the first Partnership for Global Infrastructure and Investment corridor in the Indo-Pacific. The vision was not just to build a railway and highway but to turn the stretch of Luzon into an integrated logistics, manufacturing, technology and investment corridor.
According to Go, the Philippines has sought the participation of eight other partner countries—Australia, Canada, Denmark, France, Italy, South Korea, Sweden and the United Kingdom—in the Luzon Economic Corridor initiative alongside Japan and the United States.
The corridor’s flagship project is the proposed Subic–Clark–Manila–Batangas freight railway, which Go said would connect four ports that handle 80 percent of the country’s freight traffic.
Go said the project aims to lower the cost of doing business by creating an efficient logistics network along the key commercial route. He stressed that Pax Silica would occupy only a fraction of the Luzon Economic Corridor.
Benefits and challenges
Property consultancy CBRE Philippines has described Pax Silica as a potential game changer for the country’s industrial property market.
AJ Sumalinog, head of research at CBRE Philippines, said during the firm’s second-quarter market briefing in July that at least 50 companies had expressed interest in the project, which could spur an industrial boom in the northern corridor.
The project could also generate spillover demand for hotels, serviced apartments and office developments as project teams move into the area for extended periods.
Sumalinog noted that property values in Bulacan and Pampanga had already risen by 15 to 16 percent over the previous six months.
But Pax Silica also faces challenges. Sumalinog noted that no agreements had yet been signed and that tangible benefits might not materialize until 2028 to 2030.
High power rates, government red tape, and water and infrastructure constraints could also pose challenges. CBRE noted that the Philippines might lack the depth of engineering talent needed to support semiconductor plants.
The country also faces competition for investments from other regional destinations, including India, Singapore and South Korea. —Ed: Corrie S Narisma
Contributor
