Manila’s AI ambitions hinge on skills, infrastructure and investment safeguardsLast updated: September 03, 2026 | 04:036 MIN READA view of the New Clark City in Tarlac, a former US military base about 1 hour north of Manila, set to be transformed into an AI, chips and critical minerals processing hub. The hub's governing framework is also being developed as per the Bases Conversion Development Authority (BCDA). The planned project has kicked up a massive debate in the Philippines.New Clark City | BCDAMANILA: Does the Philippines have what it takes to be an artificial intelligence (AI) and advanced technology hub in Southeast Asia? The Asian nation has many of the ingredients needed to become a regional hub: a large English-speaking workforce, an established electronics industry, a growing digital economy, improving connectivity and a strategic location between the major technology markets of East and Southeast Asia.But having the ingredients is not the same as having the infrastructure, talent and industrial depth to compete with Singapore, Malaysia, Vietnam and Thailand, an industry expert said.The question for the Philippines is no longer whether it can participate in the AI boom. Get it: Fast, verified news for FREE ... download the Gulf News app — simply click here Donald Lim, president of the Management Association of the Philippines (MAP) told the local channel Bilyonaryo that the country is “very much behind” in AI compared with leaders such as the US, India and China, but sees "Pax Silica" as a critical test of whether the Philippines can attract AI investments and move up the value chain.Also In This PackageA key test, he said, is whether the country can move beyond being a consumer and service provider of AI into becoming a place where AI systems, hardware and advanced industries are actually built.The government is betting that it can.In June, President Ferdinand Marcos Jr. ordered agencies to fast-track investments and incentives for semiconductor and AI companies, with the administration explicitly seeking to turn the Philippines into a semiconductor and AI hub in Asia.That ambition received a major boost in April, when Manila and Washington announced plans for a 4,000-acre "AI-native industrial acceleration hub in Clark", designed to bring together semiconductors, critical-minerals processing, advanced manufacturing and AI.The opportunity is substantial.So are the obstacles.Pax Silica: A test bed for AI investment