Philippines still hopes to sign US AI hub agreement in 2026

The Philippines hopes to sign a framework agreement with the United States for the proposed Pax Silica artificial intelligence industrial hub before the end of 2026, although a signing is not expected during the ASEAN Summit, according to the Board of Investments (BOI).

Ceferino Rodolfo, trade undersecretary and BOI managing director, said the agreement would identify which industries would operate at the planned hub in New Clark City, Tarlac. Signing before year-end would keep the project on schedule for its two-year development and master planning period, he said.

Rodolfo said talks with the US Department of State were progressing without substantive issues. He attributed the absence of an announcement during the upcoming meeting between US President Donald Trump and President Marcos to timing and a crowded diplomatic calendar, rather than problems with negotiations.

US Ambassador Lee Lipton also said there were no plans for an announcement on the proposed Pax Silica Economic Security Zone at the summit, scheduled for Nov. 15 to 17 in Manila. Decisions on the project would involve consultation with the Philippine government, he said.

The hub follows the Philippines’ decision in April to join the US-led Pax Silica initiative, which aims to make AI and semiconductor supply chains more secure and resilient. The Philippine government expects the project to attract technology and advanced manufacturing investment and create jobs.

Various groups have opposed the project, citing environmental concerns, large water and electricity needs, and potential displacement of farmers. Rodolfo said the Bases Conversion and Development Authority was continuing consultations with stakeholders.