Pax Silica and the Philippine Industrial Upgrading Challenge: A Tatak Pinoy Strategy Perspective

E. Annette Balaoing-Pelkmans
Additional contact information
E. Annette Balaoing-Pelkmans: School of Economics, University of the Philippines Diliman

No 202606, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: This discussion paper examines the emerging Pax Silica initiative from the perspective of the Philippine Tatak Pinoy Strategy (TPS) and associated consultations involving the semiconductor, electronics, and IT-BPM sectors. It argues that the developmental significance of Philippine participation will depend less on investment attraction alone than on whether the country can progressively deepen domestic technological, engineering, and organizational capabilities within emerging semiconductor and AI-related ecosystems. Drawing from stakeholder consultations and comparative industrial-policy literature, the paper identifies fragmented institutional support systems, weak cross-agency coordination, financing constraints, workforce mismatches, and discontinuities in government-industry collaboration as major barriers to industrial upgrading. At the same time, the consultations also point to the gradual expansion of higher-value capabilities in engineering services, cloud systems, cybersecurity, analytics, industrial software, and advanced digital operations. The paper argues that semiconductor and AI-related industries are substantially more coordination-intensive than earlier generations of export manufacturing. Long-term competitiveness increasingly depends on workforce systems, applied research capability, supplier development, financing systems, digital infrastructure, and sustained institutional coordination across firms, universities, industry organizations, and government agencies. From this perspective, Pax Silica should be approached not simply as an investment-attraction initiative, but as a potential platform for long-term capability deepening, ecosystem integration, and institutional learning.

Keywords: industrial upgrading; semiconductor ecosystems; artificial intelligence; Tatak Pinoy Strategy; capability deepening; institutional coordination; industrial policy; Philippines (search for similar items in EconPapers)
JEL-codes: F63 L52 O14 O25 O38 O53 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2026-06
References: View complete reference list from CitEc
Citations:

Published as UPSE Discussion Paper No. 2026-06, June 2026

Downloads: (external link)
https://pre.econ.upd.edu.ph/upsedp/index.php/dp/article/view/1573 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:phs:dpaper:202606

Access Statistics for this paper

More papers in UP School of Economics Discussion Papers from University of the Philippines School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by RT Campos ().