"EXPLAINER: What is Pax Silica and why are people worried?" 23 July 2026

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Pax Silica is a US-led initiative and economic security framework that hopes to create a global supply chain for AI and the semiconductor industry. The Philippines is among 24 country signatories in this agreement.

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An AI data center contains a number of supercomputers that can think of answers and generate photos and videos, according to Mariz Umali’s report on 24 Oras.

The demand for the chips needed for these supercomputers have increased across the globe.

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As part of the Pax Silica effort, an AI-focused industrial hub spanning 1,600 hectares is being eyed in New Clark City in Tarlac.

The goal of the project is to process the country’s critical minerals and to make high-tech components for AI and semiconductors.

Three industries are expected to create jobs because of Pax Silica, that will add to the country's income and tax collection, namely: AI processing, chip manufacturing, and mining.

Department of Trade and Industry Undersecretary Ceferino Rodolfo said the most important thing are the critical minerals, world-class workers and strategic location.

He added that the country will no longer export the unprocessed minerals and instead these will be processed, the value add remains in the country.

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Excessive consumption of water and energy

The Makabayan Bloc said, "(Pax Silica) threatens to permanently lock the Philippines into having the highest power rates not just in Southeast Asia but in all of Asia."

The project could have negative effects on the environment because AI facilities require massive amounts of water and electricity.

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So it has a cooling system that in some large centers uses up to five million gallons of water every day.

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According to the Bases Conversion and Development Authority (BCDA), which will manage the project, they will not compete with the use of groundwater and instead use rain water.

Engr. Joshua Bingcang, BCDA president and CEO, they will build a dam or impounding area as sources of water and surplus water can be shared with the community.

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Displacement, noise pollution

De Guzman also raised the possible displacement of around 20,000 Aetas and farmers.

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Bingcang said some agricultural land will be affected, but there is a livelihood program and modern urban farming ready for the affected residents.

The BCDA President, in an interview on Super Radyo's DZBB, said there are only around 10 farmers affected, but 200 jobs can be generated by the project.

Kalikasan said the facility could also cause noise pollution, which could disturb local wildlife such as birds.

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