A Pax Silica Cheat Sheet For Business Cocktails And Other Occasions

Say you find yourself at a conference, industry mixer,  business cocktails, or a meet-and-greet with a potential joint venture partner, and someone asks you what you think of Pax Silica. In such a situation, you want to be able to show that you know what Pax Silica is, and, gin tonic in hand, offer some sort of meaningful comment. 

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No doubt most readers of this publication are already familiar with this multilateral initiative, and a good number, more than ready to energetically discuss it at length. But in case you’re much more updated on the exchanges between opposing counsel during the Vice President’s ongoing impeachment hearings, or Alex Eala’s chances of winning the US Open, here is an easy-to-read FAQ about Pax Silica so that you can make like a boy or girl scout and always be prepared.

So what is Pax Silica? This is a US-led initiative for the establishment of what the US State Department describes as “a shared and trusted ecosystem of AI (artificial intelligence) developers and vendors,” where countries supporting the initiative are encouraged to “partner on strategic stacks of the global technology supply chain, including, but not limited to, software applications and platforms, frontier foundation models, information connectivity and network infrastructure, compute and semiconductors, advanced manufacturing, transportation logistics, minerals refining and processing, and energy.”

Still unclear? Bottomline, its main goal appears to be the establishment of a supply chain for minerals for, and the manufacture of, the semiconductors required for AI, and other advanced technology. According to reports and op-ed pieces, this initiative was likely triggered by what the US government sees as a disturbing concentration of access to those minerals and manufacturing capacity in only a few countries, China being one of them. One of the initiative’s key pillars is to “reduce coercive dependencies.”

But what is it? Is it a treaty or agreement? No. Pax Silica is set out in a declaration that has signatories and participants, but does not appear to be binding in the same way a treaty would be. It could be described as an expression of serious intent on the part of supporting nations to pursue cooperative policies.

What has the Philippines got to do with it? The Philippines signed the declaration, one of 24 countries to do, including of course the US. (This is based on the list in the US State Department’s site.) The Philippines and Singapore are the only ASEAN member signatories. Indonesia, which possesses significant quantities of the most vital mineral resources for semiconductor processing including silica sand and nickel, is not a signatory, but appears to have bilateral arrangements with US entities. Taiwan has been reported as a “participating non-signatory.” In a carefully worded “Joint Statement on the Pax Silica Declaration and US Taiwan  Economic Security Cooperation,” the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States, represented by the Taiwan Ministry of Economic Affairs, endorsed Pax Silica and stated an intent to cooperate with the US and Pax Silica signatories. Various articles note different figures, but it seems safe to say that Taiwan dominates the computer chip manufacturing market. 

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What does our signing the declaration mean for us? In his July 27, 2026 State of the Nation Address (SONA), President Bongbong Marcos, in highlighting the Philippines’ support for the initiative refers to a Pax Silica Industrial Hub that will be part of a Luzon Economic Corridor.

Okay, but what does that mean in practical terms? That hub looks like it will be a kind of  economic zone in New Clark City, Pampanga, which the government needs to develop to attract investors who will build facilities, locate and/or set up commercial operations in what the Bases Conversion and Development Authority (BCDA) has begun to call a “Golden Node.” The BCDA estimates on potential  investments have been reported as between $40 billion and $70 billion.

In exchange, and apart from the government needing to make the envisioned “node” investment-ready, the BCDA says the Philippines can offer a two-year grace period on lease payments. In one interview, it was mentioned that incentives similar to those granted to Philippine Economic Zone Authority locators and Board of Investments-registered entities could be offered.

Pros? The main pros are job creation and bringing the Philippines into the technology supply chain. According to the BCDA, “we stand to position New Clark City as a vital link in the global supply chain for advanced technologies and next generation manufacturing. On the ground, this will translate into more quality job opportunities and greater participation in local enterprises…”

Cons? The principal concerns raised are the potential adverse environmental impact, especially if a hyperscale data center is set up, lack of clarity on parameters for matters such as land use, water use, positive involvement of local enterprises, and whether usual tax and other incentives are even necessary. Without a clear policy on the commitments that investors and locators should make, critics worry that there will be relatively little return to the country in exchange for a hefty sounding foreign direct investment statistic in the next SONA. 

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What else is going on? Some senators, like Risa Hontiveros and Raffy Tulfo, have initiated inquiries into Pax Silica and its benefits and consequences. Meanwhile, there have been plenty of commentaries from pundits and civil society groups that suggest caution.

What would be great? Here, feel free to express your view or nod with furrowed brow at your cocktail companion’s comments. For me, I would say we need a clear, long-term industrialization policy that covers more than setting up an economic zone and branding it. For one, if we are serious about technology transfer and initiatives like this one resulting in citizens getting high quality jobs, we have to invest in our human resources and shore up our education programs. This can include sending people to institutions abroad to study, or beefing up training centers here, to ensure Filipinos get and keep those jobs, and meaningfully absorb know-how.

Originally published by BusinessWorld .