At least 20 firms have expressed interest in investing in the Luzon Economic Corridor (LEC), particularly in the first AI-native industrial acceleration hub under Pax Silica, to be located in New Clark City.
United States Undersecretary of State for Economic Affairs Jacob Helberg, in an interview on the sidelines of his visit to New Clark City on Monday, said more than a dozen US companies are already in the country and have expressed interest in joining the Pax Silica initiative. Pax Silica is the US Department of State’s flagship program on artificial intelligence (AI) and supply chain security.
The high-level visit brought together representatives from the US government, the Department of Trade and Industry (DTI), and other stakeholders as part of ongoing engagements on Pax Silica, to which the Philippines recently became a signatory.
"Every single company who's here is interested in potentially being a part of this historic effort. We have over a dozen companies that are here with us, several of them are over a billion-dollar companies," Helberg said. He added that these companies are interested in joining an emerging industrial ecosystem in New Clark City.
In a separate interview on the sidelines of Helberg’s visit, Trade Undersecretary Ceferino Rodolfo said five US companies and five firms based in the Middle East have also expressed plans to invest in the Philippines.
Helberg's visit included an inspection of the site for the first-ever industrial hub to be developed under the Pax Silica initiative. The hub will be located within a 4,000-acre industrial zone in the Luzon Economic Corridor.
"There are already investors who are at this time very specifically interested in these certain areas adjacent to the 4,000-acre hub. But, going beyond that, even our existing locators, let's say as far as Calabarzon, have been expressing interest and asking how can they be part of the supply chain for the AI hub," Rodolfo said.
During the visit, Helberg, Rodolfo, and Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Joshua Bingcang unveiled the marker at the proposed Pax Silica site.
"Ultimately, as the agreement that we signed with the Philippines points out, we're going to pursue it in the first stages, and so right now, with the signing of the document in Washington and today's trip, we're really entering the first step, which is going to be negotiating a long-term arrangement for the land, as well as determining the build-out and the industries and sectors that will ultimately be prioritized," Helberg said.
The site will serve as a staging point for a purpose-built platform for allied manufacturing. The project also aims to tap the Philippines' reserves of nickel, copper, chromite, and cobalt — minerals critical to global supply chains.
"We're really thrilled to be partnering with the Philippines on this. And the current government deserves a lot of credit for having the appetite to undertake something so bold," Helberg said.
Bingcang said the BCDA will approve the concept plan for the project and provide support to manufacturing firms that will locate in the hub. Addressing concerns that the project may operate under US laws, Bingcang said two Philippine laws will govern the arrangement: the Investors’ Lease Act and the BCDA law. "It will be treated as (a) regular business development contract, no special treatment to be accorded to the US," he said.
