The development of the planned artificial intelligence (AI) industrial hub in New Clark City is expected to begin soon, with the project recognized as a top economic priority for the United States (US), according to the country’s investment czar.

Finance Secretary Frederick Go said he recently met with US Ambassador to the Philippines Lee Lipton, who expressed the need to accelerate the development of the industrial hub.

“He’s very keen to make things move fast, which is good news. If we’re going to do this, we might as well do it as fast as possible so that we can provide jobs and be a significant player in the technology of the future,” Go said in a media roundtable on Friday, July 10.

“On the economic side, the Pax Silica project is on top of the priority list of the [US],” he added.

The 1,619-hectare (ha) industrial hub in Tarlac province is designated as an economic security zone, the first of its kind announced under the Pax Silica partnership, which the Philippines recently joined as its 13th member.

The US-led Pax Silica is an alliance of like-minded allies aimed at securing the supply chains needed to develop AI and other advanced technologies.

Go said the government is optimistic about developing the industrial hub as soon as possible, especially since other members of Pax Silica may also develop their own economic security zones.

According to a Financial Times report, Kazakhstan will be home to the second economic security zone under Pax Silica, which would be patterned after the Philippines’ project.

Go, for his part, said neighboring countries under Pax Silica may also develop similar projects soon, making it critical for the Philippines to move forward with the development of its industrial hub.

“Everybody wants this. It’s taxes and revenues for the government. It’s jobs for their citizens. It’s ecosystem improvement,” he said.

To kick-start the project, Go said both the US and the Philippines are optimistic about finalizing the terms for the industrial hub at an accelerated pace, potentially within the year.

US Undersecretary of State for Economic Affairs Jacob Helberg told reporters last May that both sides have two years to negotiate the terms of the project.

For the US, Helberg said it wants a deal that would provide much-needed assurance to investors that their capital would remain protected even if the governments of both countries change administrations.

Once operational, Go said the Clark hub would be a “generational project” that would transform the country’s economic outlook. He estimated that it would generate hundreds of thousands of jobs.

“If we want to be a player in the AI industry in the future, we need to start somewhere. This is really a great start. Because now, once you have the ecosystem, one thing leads to another,” he said.