Direct answer: Pax Silica is a US-led declaration, launched in December 2025, under which partner countries agree to work together on secure supply chains for semiconductors, artificial intelligence (AI) infrastructure, critical minerals, energy and logistics. It is widely read as an effort to reduce dependence on China in those sectors. The Philippines signed in April 2026 and offered about 1,600 hectares (roughly 4,000 acres) in New Clark City, Tarlac for an AI-focused manufacturing hub. As of September 25, 2026, the binding framework agreement is still unsigned: officials expect to sign it around November 2026, while Aeta communities, church groups and environmental advocates are pressing for safeguards on land, water and power.
Last materially reviewed: September 25, 2026. This is a developing story. Figures below are government projections and targets, not completed investments.
Key takeaways
- What it is: A political declaration led by the US Department of State. The declaration itself is not a treaty, and on its own it does not change Philippine law.
- Who is in it: Seven founding signatories in December 2025, including the United States, Japan, South Korea, Singapore, Australia and the United Kingdom. ITIF counted 25 signatories by August 2026.
- The Philippine project: An AI and advanced-manufacturing enclave in New Clark City, marketed as the first AI-native industrial acceleration hub under Pax Silica. It is managed by the Bases Conversion and Development Authority (BCDA).
- The pitch: Government projections include US$10 billion in initial investment, US$40–70 billion at full development and up to 190,000 direct jobs.
- The concerns: Aeta ancestral land claims, water demand (estimates range up to 65–90 million liters a day), power demand of up to 3 gigawatts, sovereignty questions and how transparent the negotiations are.
- What happens next: The BCDA–US framework signing is expected around November 2026. Site development would start from 2028 in three phases.
Jump to a section
- What is Pax Silica?
- Who are the players?
- What did the Philippines commit to?
- What are the stakes?
- Why is the project controversial?
- Timeline and latest update
- Which Philippine laws apply?
- FAQ
What is Pax Silica?
Pax Silica is a US-led economic-security initiative. Countries that sign its declaration agree to coordinate on the physical supply chain behind AI: compute and semiconductors, mineral refining and processing, advanced manufacturing, energy, logistics, and connectivity and data infrastructure. The name combines pax (Latin for peace) with silica, the raw material for silicon chips. The US Department of State runs the initiative, and Under Secretary of State for Economic Affairs Jacob Helberg is its public lead.
The underlying goal is supply-chain security. China dominates the processing of many critical minerals and large parts of electronics manufacturing. Pax Silica members are trying to build alternative trusted sources and production sites among partner countries. Chokepoints can be surprisingly narrow: one Japanese seasoning maker supplies most of a key chip-packaging film, as our explainer on Ajinomoto and ABF shows. In the Philippine context, that means using domestic mineral resources (such as nickel) and the country’s location to attract higher-value manufacturing, instead of only exporting raw ore.
There is also a separate, broader AI Opportunity Statement. According to ITIF’s tracker, 35 countries had signed it by August 2026. It is a different document from the Pax Silica Declaration.
Who are the players?
| Player | Role |
|---|---|
| US Department of State | Leads the initiative. Under Secretary Jacob Helberg signed the Philippine declaration and visited the New Clark City site in May 2026. |
| Founding and later signatories | Seven founding signatories, including the US, Japan, South Korea, Singapore, Australia and the UK. Later joiners include the Netherlands, Qatar, the UAE, India, Finland, the Philippines and, at the June 2026 summit, European signatories. |
| Philippine national government | Ambassador to the US Jose Manuel Romualdez signed for the Philippines. Finance Secretary Frederick Go has been a lead advocate. |
| Bases Conversion and Development Authority (BCDA) | Holds and manages the New Clark City land. It will sign the framework agreement and lease land to locators. President and CEO: Joshua Bingcang. |
| Department of Trade and Industry / Board of Investments (BOI) | Handles investment promotion and incentives. Undersecretary Ceferino Rodolfo leads for DTI-BOI. |
| Department of Information and Communications Technology (DICT) | Links the hub to national data-center and AI infrastructure plans. Secretary Henry Aguda has described it as a source of digital jobs. |
| Private locators | Foxconn has been reported as the first or anchor locator. Other US companies have reportedly visited the site. No final locator list has been published. |
| Aeta communities of Capas, Tarlac | Indigenous residents of Sitio Sapang Kawayan and nearby areas who say the site covers ancestral land. |
| Senate of the Philippines | Held an inquiry in August 2026. Senators called for consultation and transparency. |
| Civil society | Caritas Philippines and the Center for Energy, Ecology and Development want water, power and land-rights safeguards. Farmer, fisher and activist groups oppose the project outright. |
What did the Philippines commit to?
The Philippines signed the Pax Silica Declaration in April 2026, becoming one of the first Southeast Asian signatories after Singapore. At the same time, Manila and Washington announced plans for an economic security zone in New Clark City, Tarlac, inside the Luzon Economic Corridor. The US Department of State calls it the first AI-native industrial acceleration hub under Pax Silica. Helberg has called the concept a Golden Node, saying it is not about recreating the factories of the last century but about building manufacturing ecosystems that are AI-native from the start.
Based on official statements, the hub is planned to include:
- Semiconductor and electronics manufacturing, precision engineering and automation
- Critical-mineral processing, so that minerals are refined in the country instead of exported unprocessed
- Data centers. According to the Philippine News Agency, BCDA and BOI officials said these are for locators’ own internal use, not hyperscale cloud operations.
| Item | Official figure or target |
|---|---|
| Site area | About 1,600–1,620 hectares, reported as roughly 4,000 acres |
| First phase | About 500 hectares |
| Initial investment | US$10 billion in infrastructure |
| Investment at full development | US$40–70 billion |
| Exports | Up to US$200 billion a year at full buildout |
| Jobs | 130,000–190,000 direct; 500,000–800,000 indirect |
| Government revenue | About P60 billion in lease income over 25 years; P68–75 billion in potential annual taxes |
| Lease terms | Two-year grace period on lease payments. Rates from year three are still to be set. |
| Data-center load | About 300–400 MW, according to DICT Secretary Aguda |
These are projections that BCDA, DTI-BOI and DICT officials cited in public statements (see sources). They have not been independently verified. They also depend on locators actually committing capital.
What are the stakes?
For the Philippines
Supporters see a chance to move up the electronics value chain. The country has long been strong in chip assembly and testing, and the hub could bring higher-value manufacturing and AI infrastructure. Officials link it to national targets. DICT says the National AI Infrastructure Master Plan aims for 1.5 GW of data-center capacity by 2033, and Aguda noted that the Pax Silica site alone could roughly double current national capacity. Officials also say Manila has to act quickly: Ambassador Romualdez warned that many countries want to be part of Pax Silica, and Vietnam, Malaysia and Indonesia are all competing for US-linked supply-chain investment.
For the United States and its partners
For Washington, the hub is a trusted production site in a treaty ally, close to the minerals and manufacturing it wants to secure. For partner countries, it is part of a wider effort to diversify away from supply chains that run through China.
For communities and resources
Critics warn that the benefits could go to foreign investors while local communities carry the costs: land, water and electricity in Central Luzon, a region that already faces drought and grid stress. Estimates of the hub’s demand vary. Caritas Philippines cited 65–90 million liters of water a day and 3 GW of power. Other reports cite cooling needs of up to 5 million gallons a day. Officials reply that investors will have to build their own power and water systems.
Why is the project controversial?
Indigenous land rights
Aeta families in Sitio Sapang Kawayan, Barangay Aranguren, Capas, say the site covers ancestral land they have occupied for generations. According to GMA News, the community applied for an ancestral domain title in 1984. The National Commission on Indigenous Peoples (NCIP) gave a first endorsement in 1994, but no title has been issued. BCDA’s position is that the land is public land titled to BCDA and not covered by an ancestral domain title.
Media reports from September 20–22, 2026 say residents received a BCDA letter in July warning that the project could affect your occupied lands. They also say residents were told to leave by December and move about 16 kilometers away, and that an offer of P30 per square meter was rejected. The reports add that BCDA declined freedom-of-information requests for boundary maps, saying the information was withheld until official action is finalized. Bingcang told Radio Free Asia that residents would be pushed a little bit but would stay in the same barangay and will not be displaced. BCDA puts the affected area at about 10 hectares and 40 households.
Water and power
At a September 22, 2026 press conference, Caritas Philippines president Bishop Gerry Alminaza asked where a dependable water supply would come from during drought. He said competing land claims cannot be settled by assurances alone. Gerry Arances of the Center for Energy, Ecology and Development warned that the hub’s power demand could make the energy crisis worse. The US Department of State has said environmental, water, energy and community-impact studies will inform the project’s design.
Sovereignty and the immunity dispute
On May 18, 2026, Bingcang told reporters that the US had asked for special arrangements for the zone and that we did not agree to that. Reports described the request as covering US law and diplomatic immunity for US personnel. On May 25, Helberg answered: We never said our goal was to maintain diplomatic immunity. He said investors need certainty and predictability to commit capital over 5–10 years. Philstar reported that the published documents (the declaration and BCDA’s April proposal letter) contain no immunity or US-jurisdiction terms. The binding operating terms are still being negotiated.
Minerals and transparency
Farmer, fisher and activist groups call the deal a sellout and warn it could lead to extraction of nickel, copper, cobalt and other minerals for foreign supply chains. Protesters rallied during the Luzon Economic Corridor investment forum in mid-September. More moderate critics are asking for the full agreements, impact studies and site maps to be published before anything is signed.
Timeline and latest update
| Date | Development |
|---|---|
| December 2025 | Pax Silica Declaration launched in Washington with seven founding signatories. |
| April 2026 | Philippines signs the declaration. The US and the Philippines announce the New Clark City economic security zone. |
| May 18 and 25, 2026 | Public dispute over immunity and jurisdiction. The Philippines says it rejected any special arrangement, and Helberg says his remarks were taken out of context. |
| June 2026 | Second Pax Silica summit. Membership expands, including European signatories. |
| July 2026 | Finance Secretary Go says the Philippines aims to sign the framework deal within 2026. BCDA letters reach Aeta residents. |
| August 2026 | BCDA says site development will start in 3–5 years, with about 500 hectares in the first phase. Senate inquiry held. ITIF counts 25 signatories. |
| Mid-September 2026 | President Marcos pitches the Luzon Economic Corridor to investors while protesters rally outside. |
| September 15, 2026 | BCDA says the framework agreement with a US government agency is expected to be signed around November 2026, with development starting in 2028 in three phases. |
| September 20–22, 2026 | International and local reports on Aeta relocation fears. Caritas Philippines and CEED call for water, energy and land-rights safeguards. |
Latest update (as of September 25, 2026): No binding Philippines–US operating agreement has been signed. The next milestone is the BCDA framework agreement, expected around November 2026. That document is expected to define which industries can locate in the hub and on what terms. Meanwhile, the Aeta land dispute, the unpublished boundary maps and the water and power questions remain unresolved.
Which Philippine laws apply?
Signing Pax Silica does not exempt the hub from Philippine law. Trade Undersecretary Rodolfo has said locators will comply with Philippine laws. Several laws are likely to shape how the project moves forward:
- Indigenous Peoples’ Rights Act of 1997 (Republic Act No. 8371). It recognizes ancestral domain rights and requires free, prior and informed consent (FPIC), administered through the NCIP, for activities affecting ancestral domains. Whether the Capas site is ancestral domain is the core dispute. Senator Francis Pangilinan has publicly said FPIC must be observed.
- Environmental impact assessment rules. Large industrial projects generally need an Environmental Compliance Certificate from the DENR before construction.
- Data Privacy Act of 2012 (Republic Act No. 10173). Data centers and AI operations that process personal information in the Philippines fall under the National Privacy Commission’s jurisdiction, whoever the investor is. See our guide on which businesses must comply with the Data Privacy Act.
- Freedom of information. Executive Order No. 2 (2016) governs access to executive-branch records. It is the route residents have used to request BCDA’s maps.
Some questions do not yet have a public answer: what form the final Philippines–US agreement will take, whether it will need legislative action, and how data held in the hub’s facilities will be governed. We will update this page once the framework agreement text is published.
What this means for Philippine businesses and tech professionals
- Suppliers and IT service firms: Watch for the framework agreement’s list of eligible industries and BOI incentive rules. Security and compliance expectations from US-linked locators are likely to be strict. Our vendor and SaaS security checklist shows what enterprise buyers usually ask for.
- AI and data teams: A new pool of local compute could change where AI workloads are run. That makes governance roles such as a Chief AI Officer and controls against AI security risks more relevant.
- Everyone: Treat the investment and job figures as targets until locators sign binding commitments.
FAQ
Is Pax Silica a treaty?
The Pax Silica Declaration is a political declaration of shared goals, not a treaty. The binding terms for the New Clark City hub will be set in separate agreements, including the BCDA framework agreement that officials expect around November 2026.
When did the Philippines join Pax Silica?
The Philippines signed the declaration in April 2026. Ambassador Jose Manuel Romualdez signed for Manila and Under Secretary Jacob Helberg for the United States.
Where is the Pax Silica hub in the Philippines?
In New Clark City, Tarlac, on land managed by the BCDA within the Luzon Economic Corridor. The site covers about 1,600 hectares.
Is Pax Silica aimed at China?
US officials describe it as building secure, trusted supply chains among partners. Its practical effect is to build alternatives to supply chains in which China holds a dominant position, especially in critical-mineral processing and electronics.
Will Aeta residents be displaced?
It is disputed. BCDA says residents will not be displaced and will stay in the same barangay. Residents and media reports cite relocation letters, a December deadline and a compensation offer they rejected. The ancestral domain claim, pending since 1984, has not been resolved.
When will construction start?
BCDA has said development will start in 2028 in three phases, after the framework agreement is signed. Earlier statements gave a 3–5 year window for site development.
Will US personnel have diplomatic immunity in the hub?
Philippine officials say they rejected any special arrangement, and the US says immunity was never its goal. The published documents contain no immunity terms, but the final operating agreement has not been released.
CyberCode takeaway
Pax Silica is the clearest sign yet that the AI race is also a race for land, minerals, water and electricity. For the Philippines, the New Clark City hub could be a major industrial opportunity. Its credibility now depends on the documents that have not yet been published: the framework agreement, the impact studies and the site maps. Those are what to watch before November.
Official and primary sources: Pax Silica — US Department of State · US–Philippines economic security zone announcement — US Department of State · New Clark City to serve as AI hub — BCDA · New Clark City to host AI hub — Philippine News Agency · Pax Silica AI hub to start development in 3–5 years — Philippine News Agency · Republic Act No. 8371 — Official Gazette
News and research sources: ITIF Pax Silica timeline · Philstar, Sept 15, 2026 · Philstar, May 26, 2026 · Inquirer, DICT on AI hub · GMA News, Aeta ancestral domain · Inquirer, Sept 20, 2026 · Radio Free Asia, Sept 22, 2026 · LiCAS.news, Sept 22, 2026
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Featured image: Laura Ockel on Unsplash (silicon wafer).