President Ferdinand R. Marcos Jr. said the planned Pax Silica Industrial Hub will help position the Philippines as a key player in the global artificial intelligence (AI) and technology supply chain while creating high-quality jobs for Filipinos.
During his fifth State of the Nation Address (SONA) on Monday, Marcos said the proposed hub aims to establish an AI-centered ecosystem that will strengthen industrial competitiveness and support economic growth.
“It will bring quality jobs to our people, accelerate our industrial competitiveness, and revitalize our economy,” Marcos said.
He added that the project, which is part of the Luzon Economic Corridor, is envisioned to become an advanced manufacturing and logistics center connected to the global AI and technology value chain.
“As a strategic component of the Luzon Economic Corridor, the hub will be an advanced manufacturing and logistics center in the global AI and technology value chain,” he said.
Marcos said the government is also focusing on strategic and emerging industries to help the country move higher in the global value chain.
The President also cited Cagayan’s potential as the country’s gateway to space, saying the area is being eyed as the location of the Philippines’ first spaceport. He added that a sounding rocket launch test with a South Korean aerospace company is scheduled for 2027.
The Pax Silica Industrial Hub is a proposed high-tech manufacturing and innovation development under the Luzon Economic Corridor, aimed at strengthening the Philippines’ role in sectors such as semiconductors, AI, and critical minerals.
The Philippines joined the US-led Pax Silica Initiative in April as its 13th member.
The coalition has since expanded to include more than 30 participating countries.
The Bases Conversion and Development Authority (BCDA) earlier said the initiative could attract between USD40 billion and USD70 billion in investments once fully developed.
The proposed Pax Silica development at New Clark City in Tarlac is also projected to generate up to 190,000 jobs for engineers, researchers, computer science graduates, and other skilled Filipino workers.
However, some advocacy groups questioned the projected benefits of the project, raising concerns over its possible effects on agriculture, water resources, labor conditions, and Indigenous communities.
Advocates of Science and Technology for the People (AGHAM) and the Unyon ng mga Manggagawa sa Agrikultura (UMA) said the development’s economic promises should also consider potential impacts on affected communities.
AGHAM questioned claims that the project would not displace farmers and Indigenous Peoples, citing reports that some residents in barangays O’Donnell, Aranguren, and Santa Lucia in Capas, Tarlac have been identified as project-affected persons.
The group also raised concerns over the project’s energy and water requirements, arguing that AI data centers require continuous power supply and may create challenges in meeting projected demand.
UMA, meanwhile, said the project could worsen land conversion in Central Luzon and raised questions over the quality of jobs expected to be created.
The labor group also challenged the projected 190,000 employment opportunities, saying the government has yet to disclose details on wages and working conditions.
BCDA has defended the project, saying Pax Silica is intended to develop an AI, semiconductor, and advanced manufacturing hub that could attract investments and employment while supporting energy and infrastructure development.
The agency has also said the project aims to use renewable energy and surface water harvesting to reduce its impact on surrounding communities.
Photo courtesy of RTVM, PhilStar
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