Pax Silica
What the Philippines is actually signing
The Philippines signed on to Pax Silica in April 2026, one of only two Southeast Asian countries in the coalition. The hub it agreed to host in New Clark City would span around 4,000 acres, nearly five times the size of New York's Central Park.
What it is
Pax Silica is a U.S. State Department initiative announced in December 2025 to secure supply chains for semiconductors, AI, and advanced tech. The Philippines signed on in April 2026 as roughly the 13th member, alongside Singapore.
The coalition was formed to counter China's dominance in chip manufacturing and rare earths. China is reported to control 90% of rare earth refining, and the declaration itself names "coercive dependencies" as the thing it is reducing.
The site
The parcel inside New Clark City the hub would occupy — about 1,620 hectares of a 9,450-hectare site in Tarlac.
Source: BCDA. The governing law has not been published, four months out from the signing date.
Manila and Washington want to sign the framework agreement governing the hub by November. BCDA puts the industrial estate at about 1,620 hectares, roughly 4,000 acres, inside the 9,450-hectare New Clark City in Tarlac.
The governing law has not been published, four months out from the signing date it is meant to authorize.
Water and power
Estimated water use for a single 1-gigawatt data center — about twice New Clark City's total demand.
The Sacobia watershed, New Clark City's main water source, has reportedly shown strain since 2020. One published estimate puts a single 1-gigawatt data center at roughly 15 billion liters a year, about twice New Clark City's total demand, and the Makabayan bloc warns of the highest power rates in Asia.
Who is already there
15,000 farmers and 20,000 Aeta and Abelling people, on a 2019 Senate estimate. No household count has been published for the Pax Silica parcel specifically.
A 2019 Senate estimate put 15,000 farmers and 20,000 Aeta and Abelling people in the path of New Clark City. No one has published a household count for the Pax Silica parcel specifically.
Pros
BCDA has put the jobs figure at up to 190,000 direct jobs, and separately at more than 130,000 it calls high-quality roles. It projects $200 billion in exports at full build, between $40 billion and $70 billion in investment, ₱68 billion to ₱75 billion a year in withholding tax, and ₱60 billion in lease income over 25 years.
BCDA president and chief executive Joshua Bingcang frames the hub as "brain gain" instead of brain drain, keeping Filipino engineers, researchers, and computer science graduates working in the country.
The sector has stagnated at assembly and packaging for decades. Negotiated well, this is a mechanism to break that stagnation.
Cons
Expressions of corporate interest are not binding investments, and projected jobs are not employees. The water and power the project needs are resources the region does not have. Land claims are unresolved, and no household count has been published.
Makabayan argues that the hub subordinates the country to US war production while raising the risk of Chinese trade retaliation.
Promised, and unresolved
| What BCDA projects | What is not settled |
|---|---|
| Up to 190,000 direct jobs, and separately more than 130,000 it calls high-quality roles. | Expressions of corporate interest are not binding investments, and projected jobs are not employees. |
| $200 billion in exports at full build; $40–70 billion in investment. | The water and power the project needs are resources the region does not have. |
| ₱68–75 billion a year in withholding tax, and ₱60 billion in lease income over 25 years. | Land claims are unresolved and no household count has been published. |
Left column: BCDA statements, July 2026. Right column: Makabayan bloc and published reporting, same period.
Sources
17 documents- Manila Bulletin, "Pax Silica, explained," July 22, 2026 — mb.com.ph
- The Manila Times, "Malacañang backs Pax Silica initiative," July 21, 2026 — manilatimes.net
- Philstar, "Philippines rejects US diplomatic immunity at planned AI hub," May 20, 2026 — philstar.com
- Philstar, "US official says immunity for Pax Silica Clark hub 'taken out of context,'" May 26, 2026 — philstar.com
- BusinessWorld, "PHL, US finalize draft for Pax Silica AI hub framework," July 16, 2026 — bworldonline.com
- BCDA, "New Clark City to serve as AI hub under US-led Pax Silica Initiative," April 2026 — bcda.gov.ph
- Philippine Information Agency / PhilSTAR Life on the lease grace period, July 2026
- PAGEONE, "Pax Silica Hub Promises Jobs And Growth In Tarlac," July 24, 2026 — pageone.ph
- Philippine Information Agency, "BCDA says Pax Silica project could generate over 130,000 high-quality jobs," July 2026 — pia.gov.ph
- Daily Tribune, "Pax Silica a 'Brain Gain' for PH Economy, Says BCDA," July 23, 2026 — tribune.net.ph
- Inquirer, "Pax Silica hub to bring ₱180B in gov't income, 190,000 jobs – BCDA," July 2026 — newsinfo.inquirer.net
- BusinessWorld, "BCDA pegs Pax Silica investment at up to $70B," July 24, 2026 — bworldonline.com
- Inquirer, "Marcos, Rubio discuss Luzon devt, Pax Silica," July 23, 2026 — globalnation.inquirer.net
- U.S. Department of State, "Secretary Rubio's Meeting with Philippine President Marcos," July 22, 2026 — state.gov
- The Diplomat, "The Philippines Joins Washington's Pax Silica," May 2026 — thediplomat.com
- OECD, "Promoting the Growth of the Semiconductor Ecosystem in the Philippines," 2024 — oecd.org
- SEIPI export projections via Manila Bulletin, February 27, 2026 — mb.com.ph
Show all 17 sourcesShow fewer
Read next