House Bill 11758 Proposes a New Clark City Advanced Industries Zone to Lock In Pax Silica Investment
Lawmakers from the NUP have filed House Bill 11758, the proposed Advanced Industries Development Act (AIDA), to create an Advanced Industries Zone in New Clark City, Capas, Tarlac, aimed at attracting investment linked to the US-led Pax Silica initiative on artificial intelligence systems, critical minerals and other strategic technology, GMA News reported on October 26. The bill is led by House Deputy Speaker Ronnie Puno of Antipolo and Bataan Representative Albert Garcia.
The sponsors argue that membership in Pax Silica, which the Philippines joined in April 2026 alongside more than 20 other countries to build secure supply chains for AI technologies, opens the door but does not guarantee investment. Investors of this magnitude, the bill says, look for clear rules, efficient government and assurance that terms will not change with every administration, which only a law passed by Congress can provide. The zone would be run by a dedicated authority as the national platform for strategic technology, advanced manufacturing and innovation.
The bill sets a minimum investment of ₱15 billion per locator, excluding land, adjusted for inflation every five years but never below the original floor. Expansions of at least ₱5 billion could register as separate projects with limited incentives. Qualified enterprises would get a seven-year income tax holiday, then either a 5 percent special corporate income tax on gross income or enhanced deductions, for no more than 20 years in total. Imported goods would be free of duties and taxes while they stay in the zone for processing, testing, research or manufacturing. In return, locators must hire and train Filipinos and transfer skills so workers can eventually design, build and manage the technology, not just assemble it.
What it means in practice
The proposal turns executive-branch talk into a legislative vehicle. Earlier coverage tracked how officials broadened Pax Silica hub talks beyond New Clark and how the DTI eyed a Bulacan ecozone for AI server racks; the bill would anchor at least one site in statute. The ₱15 billion floor targets large manufacturers and data-centre builders rather than startups.
Concerns from indigenous communities about displacement remain. Puno said the issue must be dealt with properly, and Camarines Sur Representative Migz Villafuerte said only government patrimonial land would be leased, with ancestral land subject to negotiation. The bill still needs committee hearings and approval by both chambers.