The Mindanao Development Authority (MinDA) is positioning Mindanao to become a key resource and production partner as the Marcos administration’s Pax Silica initiative takes shape, particularly as the country develops a broader ecosystem for semiconductors, electronics, data centers and other strategic technology industries.
President Ferdinand Marcos Jr. highlighted the U.S.-led Pax Silica initiative in his July 2026 State of the Nation Address. The initiative includes plans for a large industrial hub in New Clark City, Tarlac, aimed at strengthening the Philippines’ role in the global artificial intelligence and technology value chain. The planned industrial estate covers about 1,619 hectares.
Assistant Secretary Romeo M. Montenegro, deputy executive director of MinDA, said Mindanao’s abundant mineral resources, power capacity and investment potential could eventually connect the region to the production chain that Pax Silica is expected to develop.
“Because once it operates, it may be tapping into resources that are available in Mindanao,” Montenegro said.
Pax Silica is a U.S.-led initiative aimed at strengthening the Philippines’ role in the global semiconductor and advanced technology supply chain by attracting investments, developing critical infrastructure and building an ecosystem for high-value manufacturing and related industries. Government officials have also emphasized the processing of locally sourced minerals, such as nickel and copper, into higher-value products rather than exporting them in raw form.
For Mindanao, Montenegro said the opportunity could go beyond supplying raw materials.
He said MinDA wants the region’s mineral resources to move up the value chain, allowing Mindanao to gain greater economic benefits from its resources rather than simply exporting them in raw form.
“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. But we’ll definitely be looking at bringing our mineral products up the value chain. So, of higher value na siya dapat if we get connected to Pax Silica,” he said.
Montenegro pointed to nickel as one area with significant potential. Mindanao is already a major source of mineral resources, with nickel ore among those exported to international markets.
“Because right now, we’ve been exporting already much of our mineral resources, particularly nickel ore, to China. So if that’s one area that they want to explore later on, so we definitely are looking at Mindanao as a very important partner of that,” he said.
While mineral resources could form part of Mindanao’s contribution, Montenegro said the exact requirements of Pax Silica have yet to be finalized.
“It depends pa later on kung unsa ang detalye sa Pax Silica,” he said when asked what specific Mindanao resources could be tapped.
Montenegro said Luzon is expected to address the initial power requirements of the initiative, but additional generation capacity is also being considered as demand from emerging industries grows.
For Mindanao, however, he said the region’s power supply situation remains manageable, particularly 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 situation would be more favorable once power plants currently experiencing forced outages return to operation, while additional power projects are also moving through the development and application stages.
“So, there’s also several power projects in the pipeline that are coming in, ongoing ang ilang application. So, definitely, this will be available by the time that you would be needing much of additional resources and capacities to meet the requirements of these industries in Mindanao,” he said.
Montenegro also highlighted data centers as another potential area of investment connected to the broader technology ecosystem.
“The data center is another area of investments,” he said.
He noted that these facilities could form part of the ecosystem alongside the physical production of technology-related goods.
“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.
However, government officials have emphasized that the planned Pax Silica hub is envisioned primarily as a manufacturing-driven industrial ecosystem, with data centers potentially forming part of the broader development rather than being its sole focus.
Montenegro said the immediate task is to prepare Mindanao for the opportunities that could emerge once the requirements of Pax Silica become clearer.
There is no specific Pax Silica-linked project in Mindanao yet, Montenegro said, but the region is already anticipating the possibility of being tapped for resources and other requirements.
“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 broader objective is to ensure that Mindanao does not remain outside the emerging technology and production ecosystem.
