Pax Silica initiative targets semiconductor hub in New Clark City

The Pax Silica initiative, a 23-member project led by the United States, aims to establish a semiconductor, artificial intelligence, and critical-minerals hub in New Clark City, Tarlac. Located within the Luzon Economic Corridor, the project covers 1,600 hectares and envisions local processing of critical minerals like nickel, alongside chip fabrication and AI infrastructure.

The Philippine government projects the initiative could attract up to $70 billion in investments and create approximately 190,000 direct jobs, with Senate leaders estimating up to 800,000 construction-phase positions.

However, the project faces significant logistical and economic challenges. Estimates suggest the hub will require 3 gigawatts of power—roughly 16 percent of Luzon’s current grid capacity—and 39 billion liters of water annually. Critics also raise concerns regarding whether the Philippines will secure binding technology-transfer commitments to avoid remaining a low-value assembly point.