The Philippines has joined Pax Silica, a US-led international technology alliance, and is set to host the coalition's first "Economic Security Zone" — a 1,619-hectare artificial intelligence and semiconductor hub inside New Clark City in Capas, Tarlac, backed by an initial $10 billion in investment and targeting a landmark framework agreement by November 2026.
The development, confirmed by multiple Philippine government agencies, represents one of the largest planned economic undertakings in the country's history — though a range of critical details, from water sustainability to displacement figures to final governance terms, remain publicly unresolved.
What Pax Silica Is and How the Philippines Joined
Pax Silica is a US-led coalition launched at a summit in Washington, D.C. on December 12, 2025, convened by US Under Secretary of State for Economic Affairs Jacob Helberg. Its stated purpose is to build secure, trusted supply chains for semiconductors, critical minerals, and artificial intelligence among allied nations — and to reduce dependence on China, which controls an estimated 90 percent of the world's rare earth refining, according to the alliance's founding documents.
The Philippines became the 13th signatory in April 2026, when Trade Undersecretary Ceferino Rodolfo signed the declaration. Members include Japan, South Korea, Australia, India, Israel, Singapore, the United Kingdom, the Netherlands, and the European Union. The total membership count is disputed: the US State Department lists 23 signatories, while Bases Conversion and Development Authority (BCDA) president Joshua Bingcang has cited 35 member countries.
The declaration is explicitly non-binding — a two-page document with no enforcement mechanism. Binding commitments are to be established through a framework agreement currently under negotiation.
A 1,619-Hectare Zone on Former Military Land in Tarlac
The planned hub will occupy 1,619 hectares of public land administered by the BCDA inside New Clark City, a government-developed urban center in Capas, Tarlac. The zone is designed to integrate semiconductor assembly, testing and packaging, electronics manufacturing, AI data centers, research and development facilities, and mineral processing.
Finance Secretary Frederick Go has identified Taiwan-based Foxconn — the world's largest electronics manufacturer and a major Apple supplier — as the anchor investor. The BCDA has also said that more than 30 companies have submitted letters of interest for participation in the zone.
Investment Targets and Job Projections
The project requires approximately $10 billion in initial investment, with projections rising to $40 billion to $70 billion at full operation, according to BCDA figures. The authority projects ₱68 billion in annual tax revenues, ₱60 billion in government lease income over 25 years, and $200 billion in export potential at full buildout.
On employment, BCDA's official estimate is 130,000 to 190,000 direct jobs and 500,000 to 800,000 indirect or induced jobs — the basis for the "up to one million jobs" figure cited in Malacañang briefings. However, the methodology behind these projections has not been published, a gap that critics continue to raise.
Water Supply: Assurances Without a Published Technical Plan
Environmental group Kalikasan has warned that a hub of this scale could consume millions of gallons of water daily through evaporative cooling, potentially competing with farms and communities. The group says the Sacobia watershed — New Clark City's primary water source — has shown signs of strain since 2020.
BCDA has responded that the hub will rely primarily on harvested rainwater collected through impounding facilities, not groundwater extraction, and that the project will not proceed without Department of Environment and Natural Resources certification confirming a sustainable water supply. No detailed technical plan — such as a documented commitment to closed-loop cooling — has been publicly released, leaving both the official assurance and the environmental alarm resting on projections rather than published documents.
Displacement Figures: A Wide and Unresolved Gap
Kalikasan and allied groups estimate that up to 20,000 residents and 15,000 farmers — including Aeta indigenous communities — could be displaced by the project. BCDA disputes this figure outright, saying the site is titled public land with no ancestral domain claim and that only approximately 10 farmers are directly affected, with a livelihood program and urban farming component already prepared.
Farmers in Capas have told reporters they are already being asked to relocate. Aeta advocates argue that the absence of ancestral domain titles reflects decades of denied recognition, not the absence of communities. Neither side has released a verifiable census of affected households — making this the single widest factual dispute in the ongoing public debate over the project.
Power Capacity and the Sovereignty Question
The hub is planned with at least 1,200 megawatts of dedicated power capacity. Funding support is being sought under the US Development Finance Corporation's $205-billion investment program, including an approved feasibility study for a liquefied natural gas terminal and power plant — addressing what officials acknowledge is a real constraint: the Philippines has among the highest electricity costs in Southeast Asia.
On governance, Philippine officials have stated that no arrangement will place the zone beyond local jurisdiction and that it will be governed by Philippine law. The US Embassy, however, has described the zone as involving "shared governance responsibilities" — language that the framework agreement will need to formally clarify before signing.
Congressional Scrutiny and the November Deadline
The framework agreement is targeted for signing in November during the ASEAN Summit in Manila, which US President Donald Trump is expected to attend. The Makabayan bloc has filed House Resolution 1128 seeking a congressional probe into the agreement, and petition campaigns opposing the signing are currently circulating.
Confirmed facts as of July 2026 include the investment figures, the identified anchor tenant, the November signing timeline, and the designated site in Tarlac. Open questions include the published water sustainability plan, the methodology behind job projections, the verified count of displaced households, and the final governance terms between Manila and Washington.
By the Numbers
- 1,619 hectares — area of the planned Economic Security Zone in New Clark City
- $10 billion — initial investment required for the hub
- $40–$70 billion — projected investment at full operation
- ₱68 billion — projected annual tax revenues at full buildout
- ₱60 billion — projected government lease income over 25 years
- $200 billion — projected export potential at full buildout
- 130,000–190,000 — projected direct jobs (BCDA estimate)
- 500,000–800,000 — projected indirect or induced jobs (BCDA estimate)
- 1,200 megawatts — minimum dedicated power capacity planned
- 90 percent — China's estimated share of global rare earth refining
- 30+ — companies that have submitted letters of interest to BCDA
- 13th — the Philippines' order of entry as a Pax Silica signatory, in April 2026
Why This Matters
Pax Silica represents the Philippines' most significant entry into global semiconductor and AI supply chain geopolitics, with investment projections that would dwarf most prior economic development initiatives in the country. The November framework agreement will convert a non-binding declaration into enforceable commitments — locking in governance arrangements, land use, and financial terms that Philippine law currently describes only in broad strokes. The unresolved disputes over water sustainability, displacement of farming and indigenous communities, and the precise meaning of "shared governance" mean that decisions made between now and November will have consequences extending well beyond Tarlac.
Photo credit: Photo from BCDA / New Clark City official channels