Philippine officials said they will include a sovereignty clause in the Pax Silica agreement. This ensures the Clark Advanced Manufacturing Park will be under Philippine control when the deal is signed in November 2026.
The Bases Conversion and Development Authority (BCDA) will lease 1,620 hectares of land in New Clark City to the U.S. government. Officials clarified that foreign workers in the hub will not have diplomatic immunity. Talks about diplomatic privileges came up early but were quickly dropped, with negotiators stressing it was never a serious issue.
Pax Silica is a U.S.-led project to build supply chains for critical minerals and technology. The Philippines will host a 4,000-acre industrial hub under the Luzon Economic Corridor. The Clark Advanced Manufacturing Plant will focus on mineral processing and making high-tech parts for AI and semiconductors. Authorities also confirmed that data centers are not part of the plan.
The project aims for an initial $10 billion investment. It is expected to create up to 150,000 direct high-value jobs, 50,000 construction jobs, and as many as 800,000 indirect jobs. Officials said the initiative will strengthen the country’s role in global tech supply chains while keeping full sovereignty over its territory.
Also Read: BCDA assures Pax Silica AI hub will follow Philippine laws
The master agreement is set for signing in November. Once finalized, development will start in New Clark City, with investments and job opportunities expected to follow soon after.
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