Philippines participation in Pax Silica coalition

In July 2024 the Philippines formally joined the U.S.-led Pax Silica coalition, a multi‑nation effort aimed at reducing reliance on Chinese rare‑earths and building resilient semiconductor and AI‑related supply chains. The agreement highlighted the Philippines’ sizable nickel, copper, chromite and cobalt reserves and its growing semiconductor assembly sector, which generated roughly US $39 billion in 2022. A core element of the country's contribution is a planned 4,000‑acre Economic Security Zone in New Clark City, Tarlac, projected to attract US $40‑70 billion in investment and create between 130,000 and 190,000 jobs.

Local reactions quickly emerged. Farmers, indigenous groups, and environmental NGOs raised concerns about the hub’s water consumption—estimated at over 5 million gallons daily—and the displacement of thousands of hectares of land. Educational institutions such as St. Scholastica’s Academy in San Fernando called for a temporary halt pending a transparent environmental impact assessment, citing unclear water and energy demands of data‑center and AI infrastructure. Despite opposition, coalition members—including the United States, Japan, South Korea, Singapore, the United Kingdom, Israel, the UAE, Australia, Finland, Sweden, Qatar and India—affirmed the strategic importance of the project for regional economic security.