Petronila Munoz, a chieftain of the Aeta Hungey tribe, expressed deep concern over the future of her community as plans for a US-led technology hub develop on their ancestral lands in the Philippines. The project, part of a broader initiative known as Pax Silica, aims to establish a semiconductor and rare earth elements manufacturing center in New Clark City in Tarlac province, roughly 100 kilometers north of Manila.
The Philippine government designated a 1,620-hectare site in New Clark City for the hub, intending to produce advanced components for artificial intelligence data centers. The initiative, announced in April, is part of the United States’ effort to bolster supply chains and reduce reliance on China. Officials estimate the project could attract as much as $70 billion in investment and create around 190,000 jobs—a significant boost for a country with more than three million unemployed.
Despite the projected economic benefits, the project has raised concerns among the roughly 1,000 Aetas who currently occupy the land. In July, the Bases Conversion and Development Authority (BCDA), the government body overseeing the project, notified the tribe of the potential impact on their territory. Munoz said BCDA representatives asked the community to leave by December and relocate some 16 kilometers away, without providing clear information about which parts of their ancestral domain would be affected. The BCDA reportedly offered 30 Philippine pesos (approximately HK$3.70) per square meter in compensation, an offer the tribe rejected.
“Our lives, our livelihood and our culture are tied to this ancestral land,” Munoz said. “Land is more important. Money runs out.”
The BCDA declined detailed comment on the tribe’s situation and withheld official maps and geospatial data related to the site, stating the information would be released once final decisions were made. BCDA president Joshua Bingcang told a Senate hearing that the Aetas were living on government land and that they, like many indigenous groups in the Philippines, do not hold formal land titles.
Environmental and resource concerns have also been raised by civic groups, who highlight the project's potentially heavy demand for water and electricity. These concerns come amid ongoing droughts and frequent power outages in the region. A US State Department spokesperson said that environmental, water, energy, and community impact studies would be conducted to guide project planning. Bingcang indicated that developers would be responsible for creating their own power and water infrastructure.
Experts say the Philippines’ position in Pax Silica offers a strategic advantage. Alvin Camba, research director at an AI supply chain and risk assessment firm, noted that Manila’s close ties with the US might attract investors despite infrastructure challenges. He added that the Philippines is relatively less influenced by Chinese capital compared to other Southeast Asian nations, which could appeal to companies seeking alternatives to Chinese-backed networks.
Political economist Calixto Chikamoto described the initiative as a “historic opportunity” for the Philippines to advance technologically beyond its current role in microchip testing and packaging. However, he criticized the government’s communication efforts as inadequate in explaining the project’s benefits and trade-offs to the public.
Meanwhile, the Aeta community remains uncertain about the government’s plans to assist with resettlement or livelihood support if displacement occurs. Munoz voiced frustration about the lack of consultation and information. She questioned whether the tribe’s members would qualify for the new jobs promised by the development and said she would resist leaving their ancestral land, even if it faced destruction.
“Why do we have to be the ones to sacrifice for the kind of development they want?” Munoz said.