The Mindanao Development Authority (MinDA) is preparing to position Mindanao as a potential resource, energy and production partner in the emerging Pax Silica ecosystem as the Philippines seeks to strengthen its role in the global semiconductor and advanced technology supply chain.
President Ferdinand Marcos Jr. highlighted the U.S.-led Pax Silica initiative during his July 2026 State of the Nation Address, including plans for a large industrial hub in New Clark City, Tarlac. The proposed 1,619-hectare industrial estate is intended to support the country’s growing role in the global artificial intelligence, semiconductor and technology value chain.
Assistant Secretary Romeo M. Montenegro, deputy executive director of MinDA, said Mindanao could eventually contribute to the ecosystem through its mineral resources, power capacity and investment potential.
“Because once it operates, it may be tapping into resources that are available in Mindanao,” Montenegro said.
Pax Silica is designed to attract investments and develop infrastructure and industries supporting semiconductors, electronics, artificial intelligence and other strategic technologies. The initiative also places emphasis on processing critical minerals into higher-value products instead of exporting them in raw form.
Montenegro said this could create an opportunity for Mindanao to move beyond being a supplier of raw materials and participate in higher-value activities.
“We’re definitely looking at these, and these are all still being sorted out in terms of in what way can Mindanao eventually be part of the ecosystem of production,” he said.
He added that MinDA wants the region’s mineral resources to be processed and upgraded so Mindanao can capture greater economic value from its natural resources.
“So, of higher value na siya dapat if we get connected to Pax Silica,” Montenegro said.
Nickel is among the resources that could potentially play a role in the emerging supply chain. Mindanao is already a major source of mineral resources, including nickel ore exported to international markets.
“Because right now, we’ve been exporting already much of our mineral resources, particularly nickel ore, to China,” Montenegro said.
He said Mindanao could become an important partner if the initiative eventually identifies nickel and other minerals as part of its supply requirements.
However, Montenegro stressed that the specific resources and industries that could be linked to Pax Silica remain uncertain as the initiative continues to take shape.
“It depends pa later on kung unsa ang detalye sa Pax Silica,” he said.
Power is another area that could determine Mindanao’s ability to participate in the broader technology ecosystem.
Montenegro said Luzon is expected to address the initial power requirements of the planned industrial development, while additional generation capacity will be needed as demand from emerging industries increases.
In Mindanao, however, he said the power supply situation remains manageable, with several projects in the pipeline.
“It is going to be a balance. But so far naman in Mindanao, we’re comfortable with our supply situation,” Montenegro said.
He added that the region’s power outlook could improve further as generating facilities currently under forced outages return to service and new projects move forward.
“There’s also several power projects in the pipeline that are coming in, ongoing ang ilang application,” he said.
According to Montenegro, these projects could provide additional capacity by the time industries begin requiring more electricity.
Data centers could also become part of the opportunities associated with the broader technology ecosystem.
“The data center is another area of investments,” Montenegro said.
He explained that data centers could complement the physical production of technology-related goods and services, forming part of a larger ecosystem.
“Kasi that could be one man gud pud na pwede nila i-avail. So, that’s why, it’s the entire ecosystem. You have the hard products, and then the soft products getting into that ecosystem,” he said.
Government officials, however, have emphasized that the planned Pax Silica hub is primarily envisioned as a manufacturing-focused industrial ecosystem, with data centers potentially serving as part of the broader development.
For now, Montenegro said there is no specific Pax Silica-linked project in Mindanao. MinDA is instead preparing the region for possible opportunities once the initiative’s requirements become more defined.
“Wala pa’y specific. Ginapreparahan lang nato, but definitely, gina-anticipate na nato na once they have details already of the Pax Silica, of their requirements, they will be looking at Mindanao for some requirements,” he said.
Montenegro said the goal is to ensure that Mindanao is ready to take part in the emerging technology and production network, particularly by leveraging its mineral resources, energy capacity and investment potential.
