The Philippines is seeking to strengthen its bilateral trade and technological partnership with Israel, focusing on the strategic goals of the United States-led Pax Silica initiative. According to the Board of Investments (BOI), the effort aims to deepen cooperation in high-tech sectors and secure essential supply chains.
Launched in December 2025, the Pax Silica initiative is designed to diversify and build resilient supply chains for AI technologies, semiconductors, and critical minerals. The Philippines is part of a broad coalition of partners in this framework, which includes Australia, Finland, India, Israel, Japan, South Korea, Qatar, Singapore, the United Arab Emirates, the United Kingdom, and the Netherlands.
Strategic Diplomacy in Jerusalem
Trade Undersecretary and Board of Investments Managing Head Ceferino Rodolfo recently traveled to Jerusalem to advance these goals. Rodolfo met with key officials from Israel’s Ministry of Economy and Industry, including Yifat Alon Perel, senior director of the Trade Policy and Agreements Division, and Oded Forer, head of the Export and Investment Promotion Division.
The discussions centered on innovation and cooperation regarding semiconductors and critical minerals. The BOI stated that both parties emphasized the necessity of working together to enhance supply chain resilience under the Pax Silica framework while identifying priority sectors for practical, early-stage cooperation.
During the mission, Rodolfo highlighted the potential for Israeli investment in the aforementioned hub, which is integrated into the Luzon Economic Corridor. The Trade Undersecretary visited the Israel Innovation Authority, the Israel National AI Directorate, the Israeli Ministry of Foreign Affairs, and various key trade partners.
Economic Ties and Future Outlook
The push for closer ties follows exploratory talks held in 2025 regarding a potential free trade agreement (FTA) between the two nations. This diplomatic momentum comes as the Philippines looks to grow its relationship with Israel, which currently stands as its 34th largest trading partner.
In 2024, bilateral trade between the Philippines and Israel totaled $400.42 million. During the same period, net foreign direct investments from Israel to the Philippines amounted to P45.94 million.
Moving forward, the two countries may further refine their priority sectors for cooperation. The ongoing dialogue could lead to more concrete investment in the Luzon Economic Corridor or the formalization of the FTA discussed in 2025.
Frequently Asked Questions
What is the Pax Silica initiative?
Launched in December 2025, it is a United States initiative aimed at securing and diversifying supply chains for AI technologies, critical minerals, and semiconductors among a group of partner nations, including the Philippines and Israel.
Where can Israeli tech firms invest in the Philippines?
Opportunities have been highlighted for investment in the 4,000-acre first AI-native Industrial Acceleration Hub located in New Clark City, Tarlac, as part of the Luzon Economic Corridor.
What was the value of trade between the Philippines and Israel in 2024?
Bilateral trade totaled $400.42 million in 2024, with Israel ranking as the Philippines’ 34th largest trading partner.
Do you believe the focus on AI and semiconductors will significantly shift the Philippines’ trade rankings in the coming years?
