Gatchalian Urges Tesda to Prepare Skilled Workforce for Pax Silica Hub

Sherwin Gatchalian warned during a recent Senate Committee on Finance hearing that the Philippines risks losing a monumental economic opportunity if the state fails to prepare a specialized labor force for the upcoming Pax Silica manufacturing hub in New Clark City, The Manila Times reported.

Building a Workforce for Advanced Manufacturing

The proposed manufacturing hub, which is part of the Philippines’ participation in the US-led Pax Silica initiative, is projected to generate between 130,000 and 190,000 jobs once fully operational. Gatchalian emphasized that supplying skilled labor is vital because project stakeholders will scrutinize the quality of the local workforce. According to the Bases Conversion and Development Authority (BCDA), Filipinos are expected to fill about 90 percent of these positions.

“This is a once-in-a-lifetime opportunity for our country, but if we cannot supply them with skilled labor — because they have a huge requirement — 190,000 — we might lose that opportunity, as they will be looking at the quality of the workforce,” Gatchalian said during the hearing on the Technical Education and Skills Development Authority’s (Tesda) proposed 2027 budget.

The projected employment figures underscore an urgent need for a cohesive workforce development strategy. Tesda reported that it is actively developing a training ecosystem that begins at the senior high school level and extends to technicians, technologists, engineers, and specialized professionals. This framework includes the construction of a regional innovation training center for Region 3 in Clark.

Expanding Beyond Manufacturing into Research and Development

While domestic planning focuses heavily on workforce readiness, the international profile of Pax Silica continues to expand. Speaking at the 24th Forbes Global CEO Conference in Singapore, President Marcos stated that he was “terribly excited” about the US-led initiative, viewing it as a gateway for the Philippines to move up the global semiconductor value chain, Philstar.com reported.

Photo: Philstar.com

Marcos told Forbes chair and editor-in-chief Steve Forbes that the country aims to transition from basic chip fabrication into advanced research, design, and development. “We were already talking about moving up the value chain and not just fabricating the actual semiconductor chips, but moving into R&D, moving into design and development,” Marcos said during the onstage discussion.

The Pax Silica initiative itself aims to strengthen international supply chains for semiconductors, artificial intelligence (AI), and critical minerals among its 24 member nations. The Philippines officially joined the coalition in April.

Investment Projections and Project Timeline

The proposed semiconductor and advanced manufacturing hub will cover approximately 1,620 hectares within New Clark City in Capas, Tarlac. The BCDA projects that the development could attract between $40 billion and $70 billion in investments once fully developed.

Photo: Inquirer

Amid the high-level economic projections, local governance and planning continue to intersect with the project’s footprint. The Department of Agriculture has begun assessing the proposed development’s potential effects on farmers in Capas. Meanwhile, the Senate agreed in September to convene a committee of the whole to examine various concerns surrounding the initiative.

The BCDA maintains that the project falls strictly within areas designated for construction under the master plan of New Clark City, clarifying that the site is intended for semiconductor and advanced manufacturing rather than a large-scale AI data center complex. Current project timelines estimate that contract negotiations will take place in 2026, followed by formal planning in 2027 and construction commencing in early 2028.