NEW CLARK CITY — The Philippines stands to generate an additional $200 billion in export revenue from the proposed Pax Silica artificial intelligence (AI) hub in New Clark City within 30 years from the start of development, or as early as 2058.

Based on estimates from state-run Bases Conversion and Development Authority (BCDA), the ambitious project is expected to more than double the country’s export value once it is fully developed over three decades.

Last year, Philippine merchandise exports reached a record-high $84.48 billion, driven by strong demand for electronic products, particularly semiconductors.

BCDA President and Chief Executive Officer (CEO) Joshua Bingcang told a press briefing on Friday, Aug. 7, that the industrial hub is poised to further strengthen the country’s role in the global value chain, given its focus on semiconductor production.

Located in New Clark City in Tarlac province, the AI industrial hub is being developed by the United States (US) and the Philippines under the Pax Silica initiative, which aims to secure the global AI supply chain.

The 1,619-hectare (ha) project is envisioned as an investment acceleration hub where companies can manufacture key inputs for AI development, including semiconductors.

Bingcang said the first phase of the AI industrial hub is scheduled to begin in 2028, covering an initial 500 ha and to be developed over three to five years.

He said the target is to secure agreements with up to 20 locators, or registered companies, during the first phase of the project.

The second and third phases will each cover another 500 ha, bringing in additional locators.

Bingcang said the full development of the AI industrial hub would take around 30 years. By then, he said, the project is expected to contribute as much as $200 billion in export value to the country.

Based on BCDA estimates, the project is expected to generate 130,000 to 190,000 direct jobs and 500,000 to 800,000 indirect jobs.

The project is also expected to contribute up to ₱75 billion in annual tax revenues for the government, alongside ₱60 billion in lease income over 25 years.

Bingcang said the project would require an initial investment of about $10 billion, with total investments for the full buildout estimated at between $40 billion and $70 billion.

At present, BCDA is working with the US State Department to finalize the framework agreement that will govern the AI industrial hub, with the signing targeted by November.

A separate commercial agreement is also being prepared to determine the project’s lead developer, as well as the lease arrangement for the 1,619-ha property.

Following an initial two-year rent-free arrangement for the site, Bingcang said BCDA may enter into either a lease or a joint venture agreement with the US for the AI industrial hub.