Progressive groups slam US-led AI hub ‘Pax Silica’ in Luzon over military, environmental concerns

A United States-led initiative to establish an artificial intelligence (AI) industrial hub in Luzon has drawn criticism from progressive groups and lawmakers, who warned it could heighten concerns over “foreign control” of Philippine resources and further expose the country to geopolitical tensions.

Calls for transparency and scrutiny of the plan intensified as US Undersecretary for Economic Affairs Jacob Helberg visited the Philippines on May 18 to inspect the proposed site.

The Philippines joined 12 other countries on April 16 in signing the Pax Silica initiative, a global supply chain framework focused on critical minerals, semiconductors, and advanced manufacturing inputs for AI systems.

Under the partnership, a 1,620-hectare site within the Luzon Economic Corridor is envisioned as an “AI-native industrial acceleration hub”, with a pioneer location near New Clark City in Tarlac set to host facilities for semiconductor production, electronics manufacturing, and critical mineral processing.

Scrutiny grows amid ‘dual-use’ worries

But for progressive groups, the project raises more questions than answers.

Bagong Alyansang Makabayan (Bayan) warned that the initiative could integrate the Philippines into what it described as “war production”, citing the military applications of semiconductors and advanced electronics.

“Semiconductors and advanced electronics are central to contemporary warfare, embedded in drones, missile systems, surveillance networks, and communications infrastructure,” the group said.

In similar statements, the Kalikasan People’s Network for the Environment said the initiative may lead to “intensified extraction” in the country’s mountains, watersheds, and ancestral domains, while the Kilusang Magbubukid ng Pilipinas (KMP) warned that rural communities could be displaced due to land conversion and mining expansion.

“The Marcos administration is offering up our land, labor, and mineral wealth to feed US war production and corporate interests,” KMP said in a Facebook post on May 21, adding that the project would further weaken domestic agriculture and rural livelihoods.

Makabayan bloc party-list lawmakers called on Congress to conduct a thorough review of Pax Silica, citing concerns over transparency and related critical minerals arrangements, as well as the potential for certain facilities to be used for military purposes.

“The public must know whether these facilities are being set up as dual-use platforms that can be repurposed for war logistics and militarized supply prepositioning,” the lawmakers said in a statement.

Advocates of Science and Technology for the People (AGHAM) also opposed the initiative, warning it could push the country toward a “militarized economy” and divert scientific development away from civilian needs such as health, climate resilience, and sustainable industry.

Economic security masked as strategy?

During a visit to the Tarlac hub site on May 18, US Undersecretary for Economic Affairs Jacob Helberg defended the initiative, saying it aims to secure “predictable and trusted” supply chains for US industries amid China’s growing dominance in critical mineral and semiconductor supply chains.

“When ninety percent of a critical input comes from one country, you do not have a supply chain. You have a hostage chain,” Helberg said, referring to China’s major share of global production of key inputs.

Helberg also described the initiative as part of a broader effort to stabilize global production networks amid growing geopolitical tensions and supply chain disruptions.

But for Arnold Padilla, spokesperson of the International League of Peoples’ Struggles (ILPS) Philippines, the project ultimately serves foreign industrial and military priorities rather than domestic development.

“This alone should already be a serious cause for concern and a compelling reason for the Filipino people to reject the project,” Padilla said.

The Philippine government has defended its engagement in the Pax Silica framework as part of efforts to modernize the country’s industrial base and strengthen its position in global technology supply chains.

The Marcos administration has previously cited projections of up to one million jobs from the broader Luzon Economic Corridor, which it says could bring significant economic benefits through job creation and increased investment in high-tech industries.