While the project remains in the planning stage, it has become part of a broader discussion about the global race for technological leadership, supply chain security and strategic industries.
A coalition for critical technologies
Pax Silica was launched in Washington, D.C., on Dec. 12, 2025, as a U.S.-led coalition aimed at strengthening and diversifying global supply chains for AI, semiconductors, critical minerals and other advanced technologies.
Initially composed of seven founding members, the coalition has since expanded to 15 participating countries, including the Philippines, the United Kingdom, Australia, Japan, South Korea, Saudi Arabia, Singapore, Israel, the United Arab Emirates, the Netherlands, Qatar, India, Sweden, Finland and Norway.
The initiative reflects growing efforts by the United States and its partners to reduce vulnerabilities in critical technology supply chains as global competition over advanced industries intensifies.
For the Philippines, participation offers an opportunity to attract investments in semiconductor manufacturing, AI, research and other high-value industries while strengthening its position in regional supply chains.
The Philippine proposal
The Bases Conversion and Development Authority (BCDA) is leading the government’s preparations because the proposed site is located within New Clark City.
Officials envision the area as an AI and advanced manufacturing hub under the Luzon Economic Corridor, an economic initiative designed to attract investments in strategic industries.
U.S. officials have said at least 20 companies have expressed interest in investing in projects under the Luzon Economic Corridor, including those related to the proposed Pax Silica development.
The BCDA has also proposed establishing a Pax Silica Coordination Office in New Clark City, including a two-year grace period on lease payments as part of the Philippines’ contribution to the initiative. Lease terms after the grace period would be determined through a separate agreement.
Why some groups oppose the project
Despite its economic promise, the proposal has drawn criticism from environmental advocates, Indigenous Peoples’ groups, church organizations and other sectors.
Critics have raised concerns that a large-scale AI and advanced manufacturing hub could increase demand for water and electricity, affect agricultural or ancestral lands, and create environmental risks if adequate safeguards are not implemented.
They have also called for greater transparency, broader public consultations and stronger environmental protections before the project proceeds.
The BCDA has disputed claims that the development would primarily consist of water-intensive data centers, saying the project is focused on advanced manufacturing.
“Hindi po, infact inaral na po namin yan, at meron na po kaming proposed na project jan. Ang target namin jan ay surface water harvesting. Lalo na po ngayon papasok na po ang rainy season. Ang gusto po natin jan ay magkakaroon po tayo jan ng impounding dam areas,” BCDA President and CEO Joshua Bingcang said.
The agency also said participating Pax Silica countries support internationally recognized environmental standards.
“Ang mga members po ng Pax Silica, sila rin ay advocate po ng UN’ environmental sustainability and governance calls. Kahit sila din po chine-check po nila kung ang Pilipinas ang proyekto ay compliant,” Bingcang said.
Government officials have likewise said water availability and the needs of nearby communities will be factored into project planning.
