Pres. Ferdinand Marcos Jr. placed the proposed Pax Silica Industrial Hub at the center of his technology and industrial agenda during his 5th State of the Nation Address on Monday, July 27, as the government appeared bent on signing a framework agreement with the United States in November despite opposition from some political and civil society groups.
The planned 1,620-hectare complex in New Clark City, Tarlac is part of the US-led Pax Silica initiative, which seeks to establish secure supply chains covering artificial intelligence (AI), semiconductors, critical minerals, advanced manufacturing, and digital infrastructure.
“The Pax Silica Industrial Hub will create an eco-system that will have AI at its core. It will bring quality jobs to our people, accelerate our industrial competitiveness, and revitalize our economy,” Marcos said.
Marcos’ prominent endorsement of the project indicated that the administration intends to proceed with it despite calls for greater scrutiny of its environmental, economic, and geopolitical implications.
The Philippine and US governments are targeting November for the signing of the framework agreement governing the proposed hub.
Bases Conversion and Development Authority president and CEO Joshua Bingcang said the agreement could be signed if US president Donald Trump visits the Philippines for the Asean Summit.
“We are under pressure to make sure that we deliver that,” Bingcang said.
The Makabayan bloc and several advocacy groups have opposed the project or called for its suspension pending congressional scrutiny, environmental studies, and consultations with affected communities.
Critics have raised concerns about its potential demand for water and electricity, the processing of critical minerals, and its implications for Philippine sovereignty.
The government, however, has continued preparations for the November signing while promoting the project’s projected investments and employment benefits.
The BCDA estimates that the hub could generate between 130,000 and 190,000 direct jobs, although these projections depend on the required investments and infrastructure materializing.
Marcos linked Pax Silica to government efforts to improve AI readiness, saying more than 1.8 million students, parents, and teachers had undergone training.
“It is not only students who are preparing for the future. Around 1.8 million students, parents, and teachers have been trained to become AI-ready,” he said.
The president also cited the expansion of fiber-optic and satellite networks, including the National Backbone, as supporting infrastructure for the government’s digital and industrial strategy.
On cybersecurity, Marcos said critical digital infrastructure would be subjected to independent third-party security and reliability testing. He also cited efforts against online scams, phishing attacks, and AI-enabled disinformation.
Marcos separately announced that a sounding rocket test launch would be conducted in Cagayan in 2027.
“Cagayan is both geographically and economically primed to serve as our gateway to space and host the country’s first spaceport. A sounding rocket launch test is slated for next year,” he said.
The demonstration will be the first launch of a liquid-fueled rocket from Philippine soil and will carry a locally developed payload weighing up to two kilograms to an altitude of at least five kilometers, according to the Philippine Space Agency.
Marcos also cited smart-farming technologies, digital agricultural platforms, and government-supported research as part of efforts to apply science and technology to food security, manufacturing, and public services.
