Pax Silica initiative to establish AI manufacturing hub in New Clark City

The Pax Silica initiative, a United States-led framework for strengthening semiconductor and artificial intelligence (AI) supply chains, is moving forward in the Philippines. The project includes plans for a 4,000-acre economic security zone within the Luzon Economic Corridor (LEC) at New Clark City, Tarlac. The hub is expected to generate ₱180 billion annually and create approximately 200,000 jobs by focusing on the production of equipment and components for AI-enabled products.

Government officials have clarified the project's scope to address resource concerns. DICT Secretary Henry Aguda stated that the New Clark City site will focus on manufacturing rather than hosting hyperscaler data centers, which require massive amounts of water and electricity. To prevent straining inland communities, future data center developments are being considered for coastal provinces like Batangas and Bataan to utilize seawater and desalination.

The initiative faces criticism regarding its environmental and social impact. Concerns have been raised by farmers and Aeta communities in Tarlac regarding land use, displacement, and access to water. Additionally, a University of the Philippines study cautioned that the nation must ensure it does not merely serve a “hosting” role in global technology networks but actively participates in shaping them.