You may have recently come across the phrase “Pax Silica” on social media and noticed that it’s a hot topic these days, but unless you follow news on technology and global supply chains, the term likely won’t mean much to you.
It sounds technical, a little vague.
To help you better understand what it is and why it matters, here’s a quick explainer.
Behind all the tech-speak is this: the United States wants to work with allied countries to secure the critical resources needed for the future—minerals, computer chips, manufacturing facilities, power, and data centers—to support the development of artificial intelligence and other advanced technologies.
The Philippines is the newest country to sign on.
Part of the plan is a technology and manufacturing hub in New Clark City, Tarlac, which could take up as much as 1,620 hectares.
It is an ambitious plan—and already a highly controversial one. Critics have questioned who stands to benefit from it, while protests have begun even before the final terms are in place.
So, what exactly did the Philippines sign up for?
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What is Pax Silica?
Pax Silica is an alliance of countries working together to secure everything needed to produce Artificial Intelligence (AI) and other modern technologies.
The word “Pax” is Latin for peace, while silica is a material used to produce silicon, the foundation of most computer chips.
For AI and electronics, the supply chain can begin with minerals pulled from the ground.
Those minerals are processed and used to produce components such as computer chips, which then go into phones, cars, robots, servers, and data centers.
Pax Silica seeks to link these stages of production within a single hub.
The U.S. introduced Pax Silica in December 2025 to reduce its reliance on China for minerals and manufacturing.
The Philippines became its 13th member on April 16, 2026, joining other countries like the United Kingdom, Japan, Australia, and India.
Basically, the U.S. wants more of the technology it relies on to come from countries it considers trusted partners.
According to Finance Secretary Frederick Go, the U.S. is “very keen to make things move fast,” saying Pax Silica is “on top of the priority list of the American side.”
The Bases Conversion and Development Authority (BCDA) is expected to sign a comprehensive framework agreement on Pax Silica with the U.S. before the end of the year.
"We are now exchanging the draft arrangement... We see it will be finalized in two to three months," BCDA President Joshua Bingcang told ANC on July 15.
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What does the Philippines gain from Pax Silica?
The Philippines already has a large electronics industry, but much of the work involves assembling, testing, and packaging products that are designed elsewhere.
Bringing it all here, Bingcang said, could translate to “more quality job opportunities for Filipinos.”
By his estimates, Pax Silica could create 130,000 to 190,000 jobs within the development itself, plus another 500,000 to 800,000 in businesses that support it or benefit from the economic activity it generates. Foreigners are expected to make up only 10% of the workforce.
"For me, I'm always saying it should be a reverse brain drain. Instead of us sending our best talents abroad to work in the biggest companies abroad, let us work in our own homeland, with foreign investments providing the opportunities," Bingcang said.
Department of Labor and Employment (DOLE) Secretary Francis Tolentino also said this could result in a "better economic growth area similar to what Taiwan is experiencing right now."
The BCDA envisions New Clark City to become the AI and semiconductor hub in the region.
Already more than a dozen U.S. technology companies have expressed interest in the Philippines, with representatives from Foxconn, Agility Robotics, and Joby Aviation visiting New Clark City last May.
“If we want to be a player in the AI industry in the future, we need to start somewherem," Go said.
"This is really a great start because once you have the ecosystem, one thing leads to another."
To prepare workers for these industries, the BCDA is already in talks with the University of the Philippines and TESDA.
Stanford University will also help develop AI training and workforce programs for Pax Silica member countries under an agreement with the U.S. State Department.
The Malacañang Palace offered its full support to the project.
"Kung mayroon man tayong pinag-uusapan tungkol sa pagpasok nito ng Pax Silica, ito po ay para sa atin at para sa mga kababayan natin," Presidential Communications Office (PCO) Undersecretary Claire Castro said during a press briefing on July 20.
"Sinisigurado po ng Pangulo na lahat po ng gagawin ay naaayon sa batas at hindi po maaaring makasira ito ng ating environment o maka-displace man ng ating mga kababayan nang walang anumang kapalit.”
Why are groups protesting against Pax Silica?
Not everyone is convinced, however, that Pax Silica will move the Philippines into the more valuable parts of the technology industry.
Critics worry that foreign companies will get to keep the valuable work—like research, product design, and patents—outside the Philippines, while Filipinos are left doing low-level work like assembly and testing.
Climate justice activist Alab Ayroso said the project could “use Filipinos as cheap labor for products we will not use but would meet the needs of other countries like the U.S.”
Groups are also worried about where the materials for these factories will come from.
Computer chips and other technologies require minerals such as nickel, copper, and cobalt, which the Philippines could supply under Pax Silica.
Environmental group Kalikasan People’s Network for the Environment said this could open more mountains, watersheds, and ancestral lands to mining.
The Malacañang Palace was quick to push back against these fears, with Castro stating in the same press briefing: "Sinabi naman din po ng Pangulo noon na we will not surrender even a square inch of our territory to any foreign power. So, sa lahat naman po ito hindi lang sa isang bansa, sa lahat po ito.”
There’s also concern about how the technology produced under Pax Silica could be used, as it could potentially be employed in drones, surveillance systems, weapons, and military logistics.
“The public must know whether these facilities are being set up as dual-use platforms that can be repurposed for war logistics and militarized supply prepositioning,” lawmakers from the Makabayan bloc were quoted as saying.
BCDA has denied this, insisting that the planned activities will be commercial, not military.
Then there’s the more immediate question: where will all the electricity come from? Once Pax Silica is fully built, BCDA estimates the entire development could need around 3,000 megawatts.
If used around the clock for a month, it could consume roughly the same amount of electricity as 8.1 million Filipino households.
BCDA said that demand would not be taken from the electricity supply for homes, instead relying on its own clean-energy facilities in New Clark City to power the project.
The same facilities will also need large amounts of water.
Data centers need it for cooling, while an average chip factory can reportedly use around 37.8 million liters of ultra-pure water a day.
That has raised fears that a development this large could put pressure on the water supply of nearby communities.
Defense Secretary Gilbert Teodoro Jr. said that the Department of Natural Resources (DENR) would not approve the project without a sustainable water management system in place.
The National Water Resources Board (NWRB) also said available water sources in the area would be enough without affecting nearby communities: "The project is being planned and developed with the clear commitment that water needs of surrounding communities will remain the foremost priority and will not be compromised at any stage of implementation or operation.”
Ultimately, BCDA reassured the public that Pax Silica would still have to follow Philippine environmental laws and regulations.
This article originally appeared on Spot.ph.