The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI), representing the country’s largest manufacturing export sector, has expressed full support for Pax Silica. However, it equally emphasized the need to institutionalize the principles of environmental stewardship, inclusiveness, Philippine sovereignty, and the rule of law in the project’s operation and development.
In its position paper, SEIPI stated that Pax Silica—which is anchored on the development of an AI Innovation Hub project across a 1,620-hectare lot in New Clark City—presents a strategic opportunity to strengthen the Philippines’ position in global semiconductor, electronics, artificial intelligence (AI), and advanced manufacturing value chains.
SEIPI noted that Pax Silica should be developed not merely as another industrial estate, but as the flagship manufacturing ecosystem of the Luzon Economic Corridor. This involves integrating advanced manufacturing, research and development, logistics, digital infrastructure, and supporting industries into a globally competitive industrial platform. As global supply chains diversify, SEIPI believes the Philippines has a timely opportunity to move beyond assembly and testing toward higher-value manufacturing, innovation, and technology development.
To maximize this opportunity, SEIPI recommends policies centered on three strategic objectives: strengthening the global competitiveness of the Philippine semiconductor and electronics industry; attracting high-value foreign direct investment; and generating quality employment and long-term industrial opportunities for Filipinos.
The association of semiconductor and electronics firms, which includes global giants, noted that global competition today is increasingly determined by the strength of entire industrial ecosystems rather than individual industrial parks. Investors evaluate the quality of infrastructure, utilities, logistics, workforce, research capability, regulatory efficiency, and supplier networks before committing long-term capital.
“SEIPI therefore supports the development of Pax Silica as the industrial anchor of the Luzon Economic Corridor, connecting New Clark City with Clark International Airport, the Ports of Subic and Batangas, and other strategic logistics gateways,” the group said.
This integrated ecosystem can position the Philippines as a trusted manufacturing partner within global semiconductor and electronics value chains.
To enhance national competitiveness, SEIPI recommends that the Philippine government prioritize world-class transport, logistics, digital, water, and power infrastructure. It also calls for reliable, affordable, and sustainable utilities, including diversified energy sources—such as exploring embedded power sources using Small Modular Reactors (SMRs) and Micro-Modular Reactors (MMRs). Furthermore, the group emphasizes the need for expanded engineering education, workforce development, applied research, and innovation; stronger domestic supplier development and parts localization to deepen Philippine participation in global value chains; and efficient customs administration, digital government services, and regulatory coordination through a modern Economic Security Zone framework.
“These measures will enable the Philippines to expand into advanced semiconductor manufacturing, integrated circuit design, AI infrastructure, advanced packaging, automation, equipment servicing, front-end manufacturing, and other high-value industries while strengthening long-term industrial resilience,” the group added.
Foreign direct investment and inclusive growth
As global semiconductor supply chains diversify, countries compete by offering predictable policies, competitive investment frameworks, and stable business environments. Accordingly, SEIPI supports aligning the Philippines’ fiscal incentives with emerging international tax standards while preserving its attractiveness for technology-intensive investments.
The implementation of the Qualified Domestic Minimum Top-up Tax (QDMTT) should therefore be complemented by a performance-based Qualified Refundable Tax Credit (QRTC). This should be aligned with the Strategic Investment Priority Plan (SIPP) and the Tatak Pinoy Act to incentivize research and development, advanced manufacturing, innovation, workforce development, supplier upgrading, and greater domestic value creation.
To strengthen investor confidence, SEIPI supports institutionalizing the Semiconductor and Electronics Industry Advisory Council (SEIAC) through legislation, alongside the continuous development of Pax Silica as a secure, innovation-driven manufacturing ecosystem for globally competitive investments.
By creating higher-value industries at home, SEIPI said the Philippines can retain skilled talent, encourage overseas Filipino professionals to return, and reduce long-standing brain drain. Ultimately, SEIPI believes industrial development should be measured not only by the investments it attracts but by the quality of jobs, skills, innovation, and long-term opportunities it creates for Filipinos.
“The ultimate objective of industrial policy is to create better opportunities for Filipinos. Pax Silica can generate high-quality employment while advancing technology transfer, innovation, supplier development, and domestic enterprise growth,” it added.
Institutionalization of principles
To protect the environment, SEIPI said Pax Silica should be developed in full compliance with Philippine environmental laws and with sustainable water management systems. These systems must prioritize the water security of surrounding communities through surface water harvesting, recycling, and efficient resource use.
The project should generate quality jobs for Filipinos while ensuring that host communities benefit through employment, skills development, livelihood opportunities, and appropriate support measures for affected stakeholders.
To preserve Philippine sovereignty and the rule of law, SEIPI has proposed that all investment arrangements remain fully consistent with the Constitution, Philippine laws, and established institutional processes. This will ensure that strategic partnerships are commercially viable, mutually beneficial, and respectful of Philippine sovereignty.
“By embedding these principles into Pax Silica, the Philippines can demonstrate that economic competitiveness, environmental responsibility, community welfare, and national sovereignty are mutually reinforcing pillars of sustainable industrial development,” SEIPI concluded.
