By Erika Mae P. Sinaking, Reporter

The Bases Conversion and Development Authority (BCDA) unveiled its first detailed economic projections for the proposed Pax Silica technology hub in New Clark City on Thursday, estimating that the project could attract between $40 billion and $70 billion in investments at full development.

The announcement comes amid a global race to expand semiconductor and critical mineral supply chains, with the United States, Japan, South Korea, and the European Union all pouring billions into domestic chip manufacturing capacity. The Philippines, a long-established hub for semiconductor assembly and testing services, has sought to climb further up the value chain amid intensifying competition from neighbors such as Vietnam and Malaysia.

BCDA President and Chief Executive Officer Joshua "Jake" M. Bingcang, speaking at a Palace briefing, outlined a phased timeline: contract negotiations with prospective partners are scheduled for this year, planning will follow in 2027, and construction is slated to begin in 2028. The proposed 1,620-hectare industrial and innovation district carries an initial investment target of $10 billion.

"This year is for contract negotiation, next year is the planning stage, and then by 2028, we can already begin construction," Mr. Bingcang said. "At full development, we see the potential at $40 billion to $70 billion. We studied that based on science; it is not based on conjecture but on scientific study."

Participation in the project has grown significantly, with involvement expanding to more than 30 countries from fewer than 15 as of April, according to Mr. Bingcang.

Pax Silica is designed to integrate semiconductor design, fabrication, and advanced packaging alongside artificial intelligence computing, critical mineral processing, energy and data infrastructure, research and development (R&D), logistics, offices, housing, and commercial facilities. The hub forms part of the Luzon Economic Corridor, a flagship initiative under the trilateral partnership among the Philippines, the United States, and Japan announced in 2024 to accelerate high-impact infrastructure investments in the region.

BCDA estimates the project could generate 130,000 to 190,000 direct jobs and between 500,000 and 800,000 indirect and induced jobs. At full development, exports could reach $200 billion. The agency also projects annual withholding tax collections of P68 billion to P75 billion and P60 billion in lease income over a 25-year period.

A central objective of the project is to elevate the Philippines' position in the manufacturing value chain by processing critical minerals domestically rather than exporting raw materials. The Philippines is among the world's top nickel producers and holds reserves of other minerals used in electronics and clean energy technologies, though most output has historically been shipped abroad in raw or lightly processed form.

"Our goal is to have these raw materials processed at the source and at the Pax Silica site, where they will be created into final products for export," Mr. Bingcang said. "This will provide a high-value chain contribution to our economy."

He emphasized that the initiative aims to create opportunities for Filipino engineers and computer science graduates. "Instead of being bystanders to these highly sought-after industries that usually pass us by, we will become builders; we will be the center of these activities ourselves," he said.

The industrial hub is projected to require approximately three gigawatts of power at full development — roughly equivalent to the capacity of a large nuclear plant — underscoring the scale of energy infrastructure needed. Mr. Bingcang said BCDA is prioritizing embedded clean energy to meet the project's electricity needs without competing with residential demand.

A 500-megawatt (MW) solar project with Saudi Arabia's ACWA Power is already underway in New Clark City. BCDA is also evaluating a proposal from an American company to develop a dedicated liquefied natural gas plant and pipeline connecting Subic and Clark.

"The Korean and Japanese companies have also signed an initial understanding with us to study how to provide the needed support [for power]," Mr. Bingcang added.

For water supply, the project will rely on surface water harvesting, storage, treatment, and recycling rather than groundwater extraction. The initial system is designed to supply 120 million liters per day, with expandable capacity of up to 300 million liters per day.

Addressing concerns previously raised about the project, Mr. Bingcang clarified that Pax Silica would remain a purely commercial undertaking governed by Philippine law.

"The Ambassador asked if they would manufacture defense-related products, and the answer was no. It is purely commercial," he said.

Mr. Bingcang rejected claims that the project would displace indigenous peoples or involve mining activities. He stated that the site is public land classified for industrial use under the Bases Conversion and Development Act of 1992 and lies outside titled ancestral domains. All investments would remain subject to Philippine laws and environmental regulations, he added.

"The ownership will always remain with the Philippine government under BCDA," Mr. Bingcang said, noting that while the agency may grant leases of up to 99 years under existing laws, it will not sell land to foreign entities.