'Neo-colonialism in disguise': Pax Silica project draws backlash even as Philippines touts 190,000 jobs and global interest

PHILIPPINES: A major US-led initiative to establish a global supply chain hub for artificial intelligence, semiconductors, and rare earth minerals in the Philippines is moving forward, with more than 30 countries already expressing interest and construction potentially beginning as early as 2028.

According to the Philippine News Agency (PNA), the Pax Silica project, which will be located within a 1,600-hectare area in the northern part of New Clark City in Tarlac province, was the subject of a briefing in Malacañang on Thursday by Bases Conversion and Development Authority (BCDA) president and CEO Joshua Bingcang, who assured that all components of the proposed project are compliant with both Philippine and international laws.

Scale and economic impact

The project’s potential economic footprint is substantial. Bingcang said Pax Silica is expected to create between 130,000 and 190,000 jobs for locals, with foreign workers projected to account for only around 10% of the total workforce, primarily in higher-level positions, leaving the vast majority of employment opportunities for Filipinos.

The initiative is also projected to boost the Philippines’ electronics sector and exports to between US$40 billion (S$51 billion) and US$70 billion, equivalent to roughly 10% of the country’s annual economic output.

Bingcang framed the employment outlook in terms of reversing the Philippines’ long-standing brain drain. “Ang layunin natin, dahil alam po natin napakadaming talentong magagaling dito sa ating bansa, ay maging brain gain tayo ngayon imbes na brain drain,” he was quoted as saying by the PNA. This translates to: “Our goal, since we know that we have a lot of talented workers, is to have brain gain instead of brain drain.”

This statement signals that the project is being positioned not just as an economic investment but as a way to keep skilled Filipino workers employed at home rather than abroad.

Design and ESG commitments

Around 40% of the designated manufacturing area will be reserved as open spaces, Bingcang said, to ensure a balanced environment for both workers and operations. The project is also being built to comply with ESG standards alongside national and international regulations.

“This will give the framework, stability and predictability to the investors because we will build it to make sure it’s compliant to all the regulation, national laws, and even the what we call ESG goals,” Bingcang said (translated statement).

The timeline

The project is currently in contract negotiation phase, with the agreement expected to be signed this year. Feasibility studies on the overall project and specific proposed investments, including power generation facilities, are ongoing.

Studies on the site’s stability in relation to natural disasters such as earthquakes and flooding are expected to be conducted next year over a roughly 12-month period. Site development is projected to begin within the first two years of signing the agreement.

A growing opposition movement

Despite the government’s enthusiasm, Pax Silica has attracted a vocal and organised wave of public opposition online, with critics raising concerns ranging from environmental impact to national sovereignty.

Hashtags including #NOTOPaxSilica, #NOTOAIDataCenters, and #ShutThePaxDown have been circulating on social media, showing that resistance to the project extends beyond isolated individual voices to what appears to be a coordinated pushback.

The concerns being raised cut across multiple dimensions. One commenter described the project as “neo-colonialism in the guise of Pax Silica,” pointing to anxieties about a US-led initiative on Philippine soil determining the terms of how the country participates in the global AI and semiconductor supply chain. “More dangerous than we think!” another user wrote, without elaborating but echoing that the project’s full implications have not been adequately communicated to the public.

Others were more blunt in their opposition: “Unplug it to kill the beast.”

The concerns are not without basis for scrutiny. Data centres and semiconductor facilities are among the most energy- and water-intensive industrial operations in existence, and their environmental footprint in a country already grappling with climate vulnerability is a legitimate area of public concern. The project’s promise of 40% open space and ESG compliance addresses some of these anxieties, but critics appear unconvinced of these government assurances.

Whether the opposition movement gains enough traction to materially affect the project’s timeline or scope remains to be seen. But the emergence of organised hashtag campaigns and pointed neo-colonialism framing suggests that the Marcos administration will need to do more than cite legal compliance and job projections if it wants to bring a sceptical public along as Pax Silica moves from negotiation to planning to construction.