Petronila Munoz, leader of the Aeta Hungey tribe in the Philippines, faces an uncertain future as a US-led initiative seeks to develop a high-tech manufacturing hub on ancestral land traditionally occupied by her community. The project, part of the United States’ Pax Silica coalition aimed at strengthening supply chains for semiconductors and rare earth elements, has designated a 1,620-hectare site in New Clark City, Tarlac province, north of Manila, for the facility.

Announced in April, the initiative is expected to generate significant investment and employment opportunities, with Philippine authorities projecting up to $70 billion in investment and approximately 190,000 jobs. It is part of a broader effort to reduce dependency on China by developing domestic capabilities in advanced technology manufacturing, particularly for artificial intelligence data centers. However, no companies have yet committed to the site, and processing of domestic mineral resources remains a longer-term goal.

For roughly 1,000 members of the Aeta Hungey tribe, the development signals a more immediate threat. In July, the Bases Conversion and Development Authority (BCDA), responsible for the project, notified the community that their land might be affected, urging them to relocate by December to an area approximately 16 kilometers away. The tribe has declined the BCDA’s offer of 30 pesos (about RM2) per square meter for their land, citing the cultural and economic importance of their ancestral territories.

Munoz emphasized the tribe’s deep connection to the land, stating that their livelihoods and traditions depend on it. The BCDA has yet to provide detailed maps or clear information about the specific boundaries or impact zones, declining a freedom of information request pending finalization of official documents. At a Senate hearing, BCDA President Joshua Bingcang characterized the Aetas as residing on government land and noted that, like many indigenous groups in the Philippines, they lack formal land titles.

The project has drawn criticism from civil society groups concerned about its environmental impact, particularly on water and energy resources. The Philippines experiences frequent droughts and rotational power outages, raising questions about the sustainability of such a large industrial complex. The US State Department has indicated that environmental and community impact assessments will inform the project's design, and BCDA officials have indicated that investors will be responsible for developing their own infrastructure for water and electricity.

Experts view the project as strategically advantageous for the Philippines, given its limited exposure to Chinese investments in Southeast Asia. Alvin Camba, research director at an AI firm specializing in supply chains, suggested the country could leverage its close ties with the United States to attract foreign companies seeking alternatives to Chinese-dominated frameworks. Political economist Calixto Chikiamco described Pax Silica as a historic chance for the Philippines to evolve beyond its traditional role in microchip testing and packaging, emphasizing the potential for technology transfer.

Both Camba and Chikiamco criticized the government for a lack of transparency and adequate consultation with affected communities. While public consultations are reportedly underway in Tarlac and nearby areas, Munoz said her tribe has not been included. She remains concerned about whether the Aeta will be provided with land or resources to sustain themselves if displaced, and doubts their ability to access the anticipated high-tech jobs the project promises.

Despite recognizing the potential long-term benefits of the initiative, Munoz voiced her determination to remain on her ancestral land, questioning why her community should bear the cost of development. The situation underscores the challenges facing the Philippine government as it balances economic ambitions with indigenous rights and environmental considerations.