A bill seeking to establish an advanced industries zone in New Clark City, Tarlac, was filed on Monday by the National Unity Party (NUP), which also proposes the creation of a dedicated government agency to oversee the hub's development and operations. The zone is expected to generate at least 150,000 high-skilled jobs.

House Bill No. 11758, known as the proposed Advanced Industries Development Act, is intended to attract investment in semiconductor manufacturing, artificial intelligence (AI) infrastructure, and other advanced sectors. It provides for the creation of an Advanced Industries Development Authority (AIDA), an independent government entity with fiscal and administrative autonomy that would supervise the zone's development and operations — a structure that would distinguish the hub from most of the Philippines' existing economic zones, which operate under the Philippine Economic Zone Authority (PEZA). As filed, the measure would still need to clear committee deliberations and win approval from both chambers of Congress before it could be enacted.

"We will require that every locator in this area will put up a minimum investment of P15 billion, excluding cost of property, excluding cost of land," NUP Chairperson and Antipolo City Rep. Ronaldo V. Puno said during a media briefing on Monday.

According to Mr. Puno, the proposed zone would span 1,350 hectares and could host hundreds of businesses. Under the measure, qualified enterprises would be required to commit a minimum investment of P15 billion, excluding land value, while registered project expansions would need to invest at least P5 billion. New Clark City itself is a state-led, master-planned development on land formerly occupied by Clark Air Base, overseen by the Bases Conversion and Development Authority (BCDA).

"This area is expected to create a minimum of 150,000 new jobs," he said, adding that the positions would cater to skilled workers rather than those in lower-skilled occupations. Projections cited in the bill estimate the zone could generate between 130,000 and 190,000 high-skilled jobs for engineers, technicians, and researchers.

Eligible industries would include semiconductor design and fabrication, advanced packaging, robotics, precision engineering, AI data centers, high-performance computing, critical mineral processing, and scientific research. Semiconductors and electronics have long ranked among the Philippines' top exports, though domestic operations have historically concentrated on assembly and testing rather than the design and fabrication work the bill lists as eligible.

To attract investors, qualified enterprises would receive a seven-year income tax holiday. Once the holiday expires, companies could choose between a 5% special corporate income tax on gross income earned or a 20% corporate income tax under an enhanced deductions regime — a menu that echoes the incentive options available to registered enterprises under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The zone would also hold the proposed status of a separate customs territory, allowing locators to import and store capital equipment, raw materials, and goods free of duties and taxes — an arrangement similar to those governing established freeports such as the nearby Clark Freeport Zone.

To fund its operations, AIDA would receive P50 billion in authorized capital stock, while the National Treasury would provide an initial annual appropriation of P1 billion for five years.

Mr. Puno added that the proposed zone would maintain its own power and water systems to support industrial operations without depriving nearby communities of these resources. — Pexcel John Bacon