A BILL seeking to establish an advanced industries zone in New Clark City, Tarlac, aims to turn the Philippines’ participation in the US-led Pax Silica initiative into up to $70 billion in investments and 190,000 jobs by attracting global players in semiconductor manufacturing, artificial intelligence and other strategic technology industries.
House Bill 11758 was filed by Antipolo City Rep. Ronaldo V. Puno, Camarines Sur Rep. Miguel Luis R. Villafuerte, Bataan Rep. Albert Raymond S. Garcia, Negros Occidental Rep. Alfredo D. Marañon III, Manila Rep. Rolando M. Valeriano, and Cavite Rep. Ramon ‘Jolo’ Revilla III. It seeks to create the Advanced Industries Development Authority (Aida) to oversee the zone and attract investments in strategic technologies and advanced manufacturing.
The bill’s explanatory note cited the Philippines’ participation in Pax Silica in April 2026, alongside more than 20 countries and the European Union, as an opportunity to secure a place in emerging global technology supply chains.
Launched by the United States and its partners in December 2025, Pax Silica seeks to build secure and resilient supply chains for technologies underpinning artificial intelligence. Lawmakers noted the initiative’s declaration as recognizing that ‘a reliable supply chain is indispensable to our mutual economic security.’
‘Membership opens the door, but it does not guarantee that the investments will come to us,’ the explanatory note said, warning that other countries were moving aggressively to attract semiconductor investments and develop their skilled workforces.
The measure seeks to establish the Advanced Industries Zone as a national platform for strategic technology, advanced manufacturing, scientific research and innovation, providing investors with a dedicated authority, coordinated government services and infrastructure to support large-scale industrial projects.
The authors said the Philippines had much to gain from moving beyond its existing role in electronics assembly and testing. Electronics accounted for 58.81 percent of the country’s total exports, valued at $49.64 billion in 2025, but higher-value activities such as semiconductor design, fabrication and advanced packaging remained concentrated overseas.
‘Unless we act, we will remain a supplier of labor and raw materials in an industry where others reap the greater rewards,’ the explanatory note said, emphasizing the need to develop domestic capabilities in advanced manufacturing and critical mineral processing.
The proposed zone in New Clark City is projected to attract up to $70 billion in investments and generate between 130,000 and 190,000 jobs, including positions for engineers, technicians and researchers. Lawmakers said these opportunities could help skilled Filipinos pursue high-value careers at home rather than seek employment abroad.
Under the bill, the proposed Aida would enjoy fiscal, administrative, operational and regulatory autonomy and oversee the zone’s development, infrastructure, utilities, investment registration and incentive programs. Qualified enterprises would need to commit at least P15 billion in project investment, excluding land value.
Eligible activities would include semiconductor design and fabrication, advanced packaging, robotics, precision engineering, artificial intelligence data centers, critical mineral processing, scientific research and energy facilities. Qualified enterprises could receive a seven-year income tax holiday and subsequently choose between a five-percent special corporate income tax on gross income earned or a 20-percent income tax rate under an enhanced deductions regime, subject to the bill’s conditions and limits.
The measure would also require qualified enterprises to train Filipino workers and transfer technical skills and know-how through formal technology transfer and training plans. The explanatory note said the goal was for Filipinos not only to assemble advanced technologies but eventually to ‘design, build, and manage them.’
To improve the investment climate, the bill proposes an integrated government services center to streamline permits and transactions, with agencies generally required to act on applications within 20 working days, subject to specified exceptions. It also provides for a free-zone customs framework covering the movement of goods, with customs controls and restrictions governed by the measure and applicable laws.
Lawmakers stressed that the initiative would not compromise Philippine sovereignty or community rights. ‘The Zone remains fully under Philippine law and jurisdiction, and no immunity is granted to any person,’ it said, adding that labor laws would apply and the rights of Indigenous Peoples and communities in Capas and Tarlac would be protected.
The bill’s authors said a stable legal framework was needed to translate the Philippines’ participation in Pax Silica into actual investments, technology transfer and high-skilled jobs. They warned that the global race for future industries was already underway and urged the measure’s immediate passage to help the country move up the technology value chain.