President Ferdinand Marcos Jr. backed the Pax Silica industrial hub, saying it would generate jobs and strengthen the Philippines’ position in the global AI industry.
During his fifth State of the Nation Address (SONA), the President said the planned hub would create an ecosystem built around artificial intelligence (AI) and serve as an advanced manufacturing and logistics center.
He described the project as a “strategic component” of the Luzon Economic Corridor and said it would help accelerate the country’s industrial competitiveness.
Pax Silica is a US-led initiative aimed at securing supply chains for AI and semiconductors. The Philippines joined the initiative in April, with plans to develop a 4,000-acre, or around 1,620-hectare, industrial hub in New Clark City, Tarlac.
The Bases Conversion and Development Authority (BCDA) earlier said the project could attract $40 billion to $70 billion in investments once fully developed and generate more than 130,000 jobs.
The project, however, has faced concerns over its potential impact on water resources and nearby communities. Questions have also been raised over foreign influence and Philippine sovereignty.
Malacañang last week said the project would have to comply with Philippine laws and include safeguards for the environment and affected communities.
The controversy follows reports in May 2026 that the US had sought to place the planned hub under American law and grant diplomatic immunity to US personnel working at the site.
Joshua Bingcang, president of BCDA, said the Philippine government did not agree to the request.
BCDA has since maintained that the development would remain subject to Philippine laws, with Bingcang saying last week that the project would also comply with applicable international regulations.
