Philippines seeks Israel partnership in AI and critical minerals to boost semiconductor capacity, enhance green metal value, and strengthen global supply chain role.
The Philippines is actively pursuing closer collaboration with Israel in the areas of artificial intelligence (AI) and critical minerals, as part of a broader strategy to strengthen its position in the global AI supply chain. According to the Board of Investments (BoI), these efforts are aimed at building long-term capabilities in advanced technologies while enhancing the value of the country鈥檚 natural resource exports.
On May 1, Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo held discussions with Eden Bar Tal of Israel鈥檚 foreign ministry. Their meeting focused on identifying potential areas for strategic cooperation, particularly in mineral processing and AI-driven technologies. One of the key outcomes under consideration is the establishment of a bilateral memorandum of agreement that would cover collaboration in critical minerals, including joint initiatives in research, development, and advanced processing techniques.
Both nations are also examining ways to capitalize on the Philippines鈥� existing strengths in semiconductor and microchip manufacturing. These industries are seen as essential building blocks for AI systems, especially in the production of hardware components required for computing infrastructure. By leveraging this capability, the Philippines aims to move beyond raw material exports and position itself as a more integral player in high-value segments of the technology supply chain.
Rodolfo emphasized that the country鈥檚 long-term objective is to increase the value derived from its 鈥済reen metals,鈥� such as nickel and cobalt. These materials are vital for emerging technologies, including electric vehicles and energy storage systems, and are increasingly important in the global transition toward renewable energy. He noted that access to advanced AI technologies鈥攑articularly those relevant to hardware manufacturing鈥攃ould enable the Philippines to enhance its industrial capabilities and add a new layer of sophistication to its mineral-based industries.
Israel, for its part, brings significant expertise in areas such as water resource management, environmental technologies, and AI hardware innovation. These strengths could complement the Philippines鈥� ambitions by supporting more efficient and sustainable industrial processes. Israeli technologies in mining and environmental management could also help accelerate the Philippines鈥� shift toward higher-value semiconductor manufacturing.
In addition to bilateral engagement, Rodolfo is set to participate in a critical minerals forum organized by the Organisation for Economic Cooperation and Development (OECD). He also plans to visit member countries of Pax Silica to explore further opportunities for collaboration in minerals processing. The Pax Silica initiative, which includes both the Philippines and Israel, is designed to strengthen cooperation among like-minded countries and serve as a counterbalance to China鈥檚 expanding influence in global technology manufacturing.
As part of its domestic strategy, the BoI has also announced plans to develop a 1,618-hectare AI-focused industrial hub in New Clark City. This 鈥淎I-native鈥� zone is intended to attract investments, foster innovation, and support the country鈥檚 ambition to become a key participant in the global AI ecosystem.
Overall, the Philippines鈥� engagement with Israel reflects a deliberate push to integrate advanced technologies with its natural resource base, aiming to achieve sustainable growth and a stronger foothold in future-oriented industries.
