NEW CLARK CITY, CAPAS, TARLAC | September 3, 2026

The proposed Pax Silica development in New Clark City is becoming one of the most significant issues for Tarlac to watch, bringing together technology, investment, jobs, agriculture, Indigenous communities, water, energy and environmental concerns.

Government agencies are promoting the project as an opportunity to position the Philippines higher in the global technology and advanced manufacturing supply chain. At the same time, farmers, Indigenous communities, lawmakers and environmental advocates are calling for closer scrutiny of its possible effects.

So what exactly is Pax Silica, how large could it become, and why is it generating debate?

WHAT IS PAX SILICA?

Pax Silica is connected to a United States led international initiative focused on strengthening supply chains for semiconductors, artificial intelligence, critical minerals and other advanced technologies.

In the Philippines, the Bases Conversion and Development Authority is proposing a 4,000 acre, or approximately 1,620 hectare, site within New Clark City in Capas, Tarlac.

BCDA says the project is envisioned primarily as an advanced manufacturing and industrial ecosystem rather than simply a massive data center development.

The agency has compared the concept to industrial economic zones where companies manufacture electronics, semiconductors, chips and other high value technology products.

HOW LARGE IS THE PROPOSED DEVELOPMENT?

The proposed Pax Silica site covers around 1,620 hectares within the larger New Clark City development.

BCDA says the site represents about 4.6 percent of the Clark Freeport and Special Economic Zone and is located within areas designated as buildable under the New Clark City master development plan.

The project is expected to be developed in phases rather than all at once.

According to government projections, contract negotiations may begin in 2026, planning could continue in 2027, and construction may begin in early 2028.

WHAT ARE THE PROMISED ECONOMIC BENEFITS?

BCDA estimates that the development could attract between US$40 billion and US$70 billion in investment once fully developed.

The agency has also projected that more than 130,000 high quality jobs could be generated for Filipino workers, including engineers, researchers, computer science graduates, manufacturing specialists and other skilled professionals.

These figures are projections and should not be treated as guaranteed outcomes.

If achieved, however, the development could significantly increase investment and economic activity in New Clark City, Capas and surrounding areas.

It could also create opportunities for local suppliers, contractors, businesses and workers throughout Central Luzon.

WHY ARE FARMERS CONCERNED?

Agriculture remains one of the biggest questions surrounding the proposal.

On September 1, Agriculture Secretary Francisco Tiu Laurel Jr. told lawmakers that the Department of Agriculture is still assessing the possible effects of Pax Silica on agriculture and farmers in Tarlac.

Questions have been raised about how many farmers could be affected and whether agricultural livelihoods, irrigation systems or productive land could be disrupted.

The DA has not yet completed its assessment, meaning estimates circulating publicly regarding the number of affected farmers should not yet be treated as final.

WHAT ABOUT INDIGENOUS COMMUNITIES?

Concerns have also been raised regarding Aeta communities and ancestral land in and around Capas.

Critics and community groups have questioned whether development could affect Indigenous communities, their livelihoods, water sources or land traditionally used by their families.

BCDA disputes claims that the project would displace Indigenous communities.

The agency says the proposed development is situated within designated buildable portions of New Clark City and maintains that the project site does not overlap with recognized ancestral domains.

Because these claims remain part of an ongoing public discussion, land boundaries, community consultation and Indigenous Peoples' rights will be important issues to monitor as the project progresses.

HAS AN ENVIRONMENTAL IMPACT ASSESSMENT BEEN COMPLETED?

As of late August, no project specific Environmental Impact Assessment for Pax Silica had yet been processed.

During a congressional budget briefing on August 26, the Department of Environment and Natural Resources confirmed that it had not yet processed an environmental impact assessment specifically for the proposed Pax Silica hub.

DENR officials clarified that an Environmental Compliance Certificate had previously been issued for BCDA's broader development plan, but this should not be confused with a completed environmental review specifically covering Pax Silica.

BCDA has said individual project components will still be required to obtain the appropriate environmental permits and Environmental Compliance Certificates before construction.

WHY ARE WATER AND ELECTRICITY IMPORTANT?

Another major concern is the amount of energy and water that could eventually be needed by a large advanced manufacturing ecosystem.

BCDA President Joshua Bingcang said an initial estimate places Pax Silica's electricity requirement at around three gigawatts at full development.

BCDA has said renewable energy sources are expected to play an important role in meeting that demand.

The scale of the possible electricity requirement has raised questions about energy infrastructure, costs and potential pressure on the Luzon power system.

Water availability has also become part of the debate because semiconductor and advanced manufacturing facilities can require substantial water resources.

BCDA says sustainable water systems, including treatment, recycling and surface water management, are being considered.

Detailed requirements will become clearer once individual facilities, investors and environmental studies are finalized.

WHO COULD BENEFIT?

If the project develops as envisioned, potential beneficiaries could include Filipino engineers, researchers, technology professionals, manufacturing workers, local businesses, contractors and suppliers.

Tarlac could also benefit from increased economic activity, infrastructure development and investment around Capas and New Clark City.

Government officials argue that the project could help create higher value jobs in the Philippines and allow more Filipino professionals to build careers locally rather than leaving the country for technology opportunities abroad.

WHY ARE SOME GROUPS OPPOSING IT?

Many of the concerns surrounding Pax Silica are not simply about whether technology development is good or bad.

The debate centers on whether the promised jobs and investments can be achieved without unacceptable consequences for existing communities, agriculture and natural resources.

Among the questions that still need clearer answers are:

How many farmers could actually be affected?

Could any communities lose access to farmland or livelihood areas?

Will any recognized or claimed ancestral lands be affected?

How much water will operating industries require?

Where will the project's electricity come from?

What environmental impacts will be identified through formal assessment?

How many jobs will actually go to residents of Tarlac and nearby provinces?

What safeguards will protect communities if development affects existing livelihoods?

WHAT HAPPENS NEXT?

Pax Silica remains a proposed development rather than a fully completed or operational industrial hub.

The Department of Agriculture is still assessing its possible agricultural impact.

A project specific environmental impact assessment had not yet been processed by DENR as of August 26.

BCDA continues to defend the development and says the project could create major economic opportunities while complying with Philippine environmental and land use regulations.

For Tarlac residents, the most important issue may therefore not be choosing immediately between supporting or opposing Pax Silica.

The bigger question is whether Tarlac can secure the promised jobs, investment and technological development while protecting farmers, Indigenous communities, water resources and the environment.

The answers will depend on transparent planning, credible environmental studies, accurate agricultural assessments and meaningful consultation with the communities that could be affected.

Everything Tarlac will continue monitoring official assessments, environmental reviews, consultations and developments involving Pax Silica and New Clark City.