AGHAM warns Pax Silica Hub turns New Clark City into a U.S. supply hub instead of building real Filipino industry. (Image: Wikimedia Creative Commons)
MANILA โ A leading Filipino science advocacy group is urging the government to abandon plans for a U.S.-backed Pax Silica Hub in New Clark City and instead use the site to strengthen the country’s domestic manufacturing sector.
Giovanni Tapang, spokesperson for the Advocates of Science and Technology for the People (AGHAM), said the proposed Pax Silica project primarily serves U.S. strategic interests in artificial intelligence and critical minerals rather than the Philippines’ long-term industrial development. He argued that the project would keep the country in lower-value segments of the global supply chain under land leases that could last up to 99 years.
The criticism comes as the Philippine government promotes the project as a key investment initiative designed to attract billions of dollars in foreign capital, create thousands of jobs and position the country as a regional hub for advanced manufacturing.
What is Pax Silica?
Pax Silica is a U.S.-led international coalition launched in late 2025 to build secure and resilient supply chains for semiconductors, critical minerals, advanced manufacturing and artificial intelligence infrastructure among allied countries. The initiative is widely viewed as part of broader efforts to reduce dependence on China, which dominates the processing and refining of many minerals used in batteries, electronics and other high-tech industries.
The Philippines joined the coalition in April 2026. Membership has since expanded to more than two dozen countries and the European Union.
The New Clark City hub
As its contribution to the initiative, the Philippine government has designated about 1,620 hectares (4,000 acres) in New Clark City, Tarlac province, for an “AI-native” industrial and innovation zone.
The site, part of the Luzon Economic Corridor and managed by the Bases Conversion and Development Authority (BCDA), is expected to host semiconductor design, fabrication and packaging facilities, critical mineral processing for nickel, copper and cobalt, AI computing infrastructure, research and development centers, and supporting logistics, energy and commercial facilities.
Government officials estimate the project could attract $40 billion to $70 billion in investments, generate 130,000 to 190,000 direct jobs and boost exports and tax revenues. Under Philippine law, foreign investors may lease land for up to 99 years.
Construction is expected to begin around 2028 if negotiations and agreements are completed.
Criticism
Tapang and AGHAM said the initiative is driven largely by U.S. efforts to secure alternative sources of critical minerals and manufacturing capacity outside China’s control.
They argued that the Philippines risks remaining an exporter of raw or semi-processed materials and a center for lower-end assembly instead of developing higher-value industries that primarily benefit Filipinos.
“This is actually development that is not for us. This is development that is for the U.S., wanted by the U.S., and we’re being dragged into it,” Tapang said in a recent television interview.
He said New Clark City’s industrial land should instead be dedicated to expanding the country’s own manufacturing base.
Critics have also expressed concerns over the possible displacement of residents and farmers, environmental impacts from expanded mining and mineral processing, and the project’s significant energy requirements.
Government position
Philippine officials have defended Pax Silica as an opportunity to move beyond exporting raw mineral ores โ much of which currently goes to China โ by developing domestic processing and higher-value manufacturing industries.
They said the initiative would attract technology, investment and skilled jobs while strengthening economic partnerships with allied countries.
BCDA and trade officials said the industrial zone would operate under Philippine laws and BCDA regulations. Negotiations on a framework agreement with the United States are continuing, with reported interest from companies including Taiwan-based Foxconn, as well as firms from South Korea, Japan and other countries.
Why it matters
The debate underscores long-running questions over how the Philippines should develop its mineral resources, industrial land and strategic location.
Supporters view Pax Silica as an opportunity to move the country up the global technology value chain by attracting advanced manufacturing and investment. AGHAM and other critics argue the project prioritizes foreign supply chain security over building an independent, nationally driven industrial economy.
The project remains in the planning stage. Final decisions on investment terms, local content requirements, environmental safeguards, and community protections are expected to determine whether the development delivers broad economic benefits for Filipinos or primarily advances the strategic priorities of foreign partners.
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