In April 2026, the Philippines joined Pax Silica, the US-led alliance launched in December 2025 to secure the supply chains for AI, semiconductors, and critical minerals.
The pitch to Filipinos is growth and upgrade. Pax Silica will supposedly allow us to move past the low-margin work of assembling, testing, and packaging (ATP) that has dominated our manufacturing exports for the longest time. A 1,618-hectare “Economic Security Zone” in New Clark City would become a “Golden Node” in the network.
This deal sounds good and feels right. But before we celebrate, let’s parse what we’re actually getting.
We could stay stuck at the bottom
First, a basic fact in global value chains is that where you sit in the chain decides how much of the money you earn and keep. Countries that design the semiconductors and own the patents take most of the value. Meanwhile, countries like the Philippines that assemble it or dig up the minerals inside it take meager pickings.
