Chipmakers back Pax Silica amid Congress scrutiny

MANILA, Philippines — The country’s leading group of semiconductor and electronics manufacturers has formally thrown its support behind the controversial Pax Silica hub project in New Clark City, as the initiative faces separate calls for investigations in the Senate and House of Representatives.

While the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi) described the project as a “strategic opportunity” to move the local chip industry up the global value chain, it also called for safeguards covering the environment, workers, affected communities and Philippine sovereignty.

READ: Pax Silica to boost semiconductor industry

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Seipi nonetheless urged the government to position Pax Silica as the “flagship manufacturing ecosystem” of the broader Luzon Economic Corridor, which links Metro Manila, Batangas, Clark and Subic.

“As global supply chains diversify, the Philippines has a timely opportunity to move beyond assembly and testing toward higher-value manufacturing, innovation, and technology development,” Seipi said in its position paper.

Seipi also said the 1,619-hectare hub — which will function like an economic zone — could serve as the “industrial anchor” connecting New Clark City with Clark International Airport and the ports of Subic and Batangas.

As such, the group called on the government to ensure competitive transport, logistics, digital, water and power infrastructure, alongside reliable and affordable utilities. It even proposed exploring small modular and micro-modular nuclear reactors as potential embedded power sources.

Seipi also called for sustainable water management that prioritizes the water security of nearby communities, while ensuring that host communities benefit from jobs, skills development and livelihood opportunities.

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It said all investment arrangements must comply with the Constitution and Philippine laws.

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Ultimately, the group said these measures could help the Philippines expand beyond its traditional strengths into advanced semiconductor manufacturing, integrated circuit design, advanced packaging, AI infrastructure, automation and front-end manufacturing.

“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 said.

Seipi’s position comes as Senators Kiko Pangilinan and Imee Marcos have called for a Senate inquiry into Pax Silica, citing concerns over its potential impact on farmers, indigenous communities, and electricity and water supply.

Separately, Akbayan party-list had filed House Resolution No. 1227 seeking a congressional inquiry into the Philippines’ participation in Pax Silica, arguing that the project’s “fast-tracking” was “deeply troubling.”

According to Seipi president Danilo Lachica, the group’s position has already been forwarded to members of the Senate committees on science and technology and finance, including Senators Bam Aquino and Risa Hontiveros. Some members of the House of Representatives were also furnished copies.

At a Pax Silica briefing in New Clark City last week, Lachica also extended Seipi’s support to the Bases Conversion and Development Authority (BCDA) and the Board of Investments (BOI), the two Philippine government agencies leading the project.

“We know that there’s still going to be rough challenges, but we’re behind you to support you,” he told BCDA president and CEO Joshua Bingcang and BOI managing head Ceferino Rodolfo. “Our industry supports Pax Silica.” /pai