Gibo: Pax Silica about building PH ‘resilience’
Defense Secretary Gilberto “Gibo” Teodoro Jr. on Wednesday became the latest government official to defend against early criticisms of the new industrial tech hub soon rising in Luzon through the Pax Silica project, saying these should be weighed against the long-term need to strengthen “national resilience.”
In a roundtable discussion with Inquirer editors and reporters, Teodoro said the project will benefit the Armed Forces of the Philippines modernization program, a critical component in the country’s external defense against threats to its sovereign rights in disputed waters.
“They can criticize that, but it is a step toward national resilience,” he said. “Criticizing without realizing the challenges that this country and the future generations need to meet, and refusing to evolve with the times is a bigger challenge for us.”
“So for the critics, a closed mindset in today’s day and age means to say that you’ll never be able to position your country to face the challenges of the future,” he added.
And because the project would rise on former military land managed by the Bases Conversion and Development Authority (BCDA), he pointed out, revenues derived from it will benefit the AFP’s modernization under existing laws.
“Those are military-based lands […] Anything under BCDA should go to the Armed Forces of the Philippines,” he said.
This policy, however, has not always been fully carried out, he noted. “Somehow that has not been translated throughout the years. We’re now making sure that that happens,” he said.
Under Republic Act No. 10349, which amended the AFP Modernization Act, the AFP Modernization Trust Fund includes the military’s share of proceeds from the sale, lease and joint development of former military camps covered by Republic Act No. 7227, or the Bases Conversion and Development Act.
RA 7227 created the BCDA to convert former military reservations into productive civilian use while generating funds for military modernization.
Public interest
Teodoro described Pax Silica as a commercial venture with significant public interest because of the strategic importance of semiconductor production.
“It is a business invested with public interest because of the nature of the product,” he said.
The project is a United States-backed initiative to establish a 1,619-hectare technology and advanced manufacturing hub in New Clark City under the Luzon Economic Corridor.
The BCDA projects that the hub can bring up to P180 billion in total revenues per year and generate almost 200,000 jobs for Filipinos should it become fully operational in after a decade.
Teodoro said it would also help the Philippines reduce vulnerabilities in critical technology supply chains by working with trusted partners on semiconductor production and other emerging technologies.
“For disruptive and upcoming technologies, we need the capabilities that are produced by like-minded countries and allies,” he said.
He pointed out that countries like Japan are seeking to diversify semiconductor supply chains because of their importance to artificial intelligence, defense systems and other advanced technologies.
“Anybody who uses semiconductors really needs this reliance on different sources. Obviously one of the key sources is China, and that is a source of compromise,” he said.
He argued that relying on trusted suppliers and like-minded partners may come at a higher cost than sourcing from China, but would reduce the risks of compromised products, data security breaches and vulnerable supply chains.
Valid concerns
The project, however, has drawn criticisms from some groups over its potential environmental impact, water and power requirements, and foreign participation.
The defense chief said environmental and sustainability concerns are valid but maintained that any company involved in the project would still have to comply with corporate standards and sustainability requirements.
“All of these things are valid concerns. No self-respecting, self-sustainable enterprise requires sustainability because at the end of the day, it’s governed by a different set of rules,” Teodoro said.
He added that the Philippines’ strategic location makes it an attractive destination for investments aimed at strengthening trusted supply chains.
“The Philippines is a magnet in itself,” he said, citing the country’s position between the South China Sea and the Pacific Ocean and along major international sea lanes.
