For decades, the Philippines has been good at supplying what the global economy needs, but not at capturing the biggest share of the value.

We export minerals and agricultural products that are processed elsewhere, assemble electronics designed abroad, and send highly skilled workers overseas because the domestic economy cannot always offer comparable opportunities.

Now comes Pax Silica, which deserves serious attention. The flagship industrial initiative of the Marcos administration in the New Clark City area, it seeks to bring semiconductor manufacturing, artificial intelligence, advanced manufacturing, robotics, digital infrastructure, electric vehicles, batteries and critical-mineral processing together.

If things go well, it could attract billions in investment and strengthen the Philippines’ position in global technology and AI supply chains.

At last week’s Kapihan sa Manila Hotel, Philippine Chamber of Commerce and Industry President Ferdinand “Perry” Ferrer and Ease of Doing Business Foundation President Roberto “Bobby” Alvarez expressed strong private-sector support for the initiative, citing the estimated 150,000 new jobs and investor commitments.

But more than the number of jobs, what makes Pax Silica compelling is its potential to change the kind of jobs Filipinos do and the kinds of products the Philippines exports.

As Ferrer put it, the country cannot afford to still be offering primarily labor five years from now.

Indeed, for too long, our economy has depended heavily on remittances, business-process outsourcing and relatively low-cost labor and manufacturing. Neighboring economies have moved further up the value chain.

Economists have argued that joining global production networks is not enough. The Philippines must develop capabilities in engineering, research, design and innovation so it can create technology instead of merely assembling it.

That is how countries such as South Korea and Taiwan transformed themselves. Pax Silica could give the Philippines an opportunity to begin making that transition.

But the opportunity comes with costs. BCDA estimates Pax Silica’s water requirement at about 65 million to 90 million liters a day, while its electricity demand could reach three gigawatts at full development. Can Central Luzon spare that much water during droughts? Can the power system accommodate such demand?

Ferrer said the plan is to augment the current power supply with a planned 500-hectare, Middle East-backed renewable energy investment. Pax Silica is not a mining project but will involve critical-mineral processing. He also said water will be harvested and allocated for the project, with excess potentially benefiting surrounding communities.

Such assurances are welcome. But they must become clear rules, standards, monitoring and enforceable obligations.

Semiconductor manufacturing also produces wastewater that can contain hazardous substances. Without rigorous treatment and enforcement, pollutants could threaten rivers, groundwater and farmland.

The same principle applies to electricity. A reported commitment to large-scale renewable energy is encouraging, but the public should know how much power Pax Silica will consume, where it will come from and who will pay for the infrastructure.

Then there is the most important resource of all: human resources.

The Philippines cannot build a technology hub simply by constructing factories and attracting foreign capital. It needs engineers, scientists, technicians and skilled workers capable of operating—and eventually designing and improving—sophisticated facilities.

That makes cooperation among TESDA, DepEd, CHED, industry and universities particularly important. Foreign investment should also come with expectations for technology transfer, university partnerships, and stronger local supplier networks. Otherwise, Filipinos could end up providing the land, labor, and incentives while others capture most of the value.

Pax Silica also has geopolitical implications. Many see it as a chance to join technology supply chains led by the US and its allies. Others warn that replacing dependence on China with dependence on the US could simply mean trading one form of reliance for another.

But the real measure is what Pax Silica brings to the Philippines.

Will it enable Filipino engineers to develop advanced expertise? Will Philippine universities gain stronger research capabilities? Will local companies become part of sophisticated global supply chains? Will Filipino scientists, technicians and entrepreneurs gain the skills to develop and improve technologies themselves?

The goal should not simply be to attract foreign capital, but to ensure that sustained participation expands Philippine capabilities.

And the Philippines should not wait for distant results before asking whether the project is serving the national interest. Safeguards, commitments and accountability must be built in from the beginning.

If Pax Silica creates high-value jobs, develops Filipino capabilities, strengthens local industries, and maintains high environmental and social standards, it could help the Philippines break out of its traditional role in the global supply chain.

At this point, however, Pax Silica should not be a choice between blind enthusiasm and automatic opposition. Rejecting it outright could mean squandering a rare opportunity to move the country up the industrial ladder. But embracing it without safeguards could leave the Philippines paying the price through resource depletion, environmental damage, and another generation of technological dependence.

The ideal position is neither unquestioning enthusiasm nor outright rejection, but conditional support. If Pax Silica develops Filipino talent, protects communities, and the environment, and ensures that benefits are broadly shared, it could become a genuine engine of national development. ([email protected])