Philippines scrambles to lock in US-backed semiconductor hub before 2028 political turnover

The Philippines has under two years to turn Pax Silica, a US-backed plan to build a domestic manufacturing base for critical minerals and semiconductors, into a functioning industrial hub before political changes in both countries could undo it.

Pax Silica is a Trump administration initiative to diversify US supply chains away from China. Manila wants to position itself as the alternative manufacturing site.

Philippine President Ferdinand Marcos Jr. leaves office in 2028, and Trump faces midterm elections next year that could shift control of Congress. Jonathan Ravelas, former chief market strategist at BDO, the Philippines' largest bank, said the government needs to move fast to establish agreements and infrastructure that can survive those transitions. "The faster the government can institutionalise agreements and deliver infrastructure, the lower the political risk," said Ravelas, now managing director of eManagement for Business and Marketing Services.

The source did not specify what infrastructure or agreements remain unfinished, or how far the project has progressed toward operational status.