Philippine President Ferdinand Marcos Jr. attended an investors’ forum in early September to promote the Luzon Economic Corridor, an economic development initiative launched in 2024. The event drew significant protest activity, with demonstrators objecting to Pax Silica, a U.S.-led initiative aimed at building an artificial intelligence and semiconductor supply chain independent of Chinese involvement. Police dispersed crowds outside the venue, resulting in conflicting accounts of casualties and arrests. Civil society groups and Indigenous communities have expressed opposition to the project, characterizing it as an appropriation of Philippine resources and lands.
The planned infrastructure will occupy approximately 4,000 acres within New Clark City, a government-developed smart city situated on the grounds of a former U.S. military installation. Development authority officials estimate the facility would require around 3 gigawatts of power, with plans for solar energy generation using the region’s abundant sunshine. Water consumption projections range from 16 million to 24 million gallons daily during operational phases. The project also incorporates plans for mineral processing technology, though details regarding waste management remain undisclosed.
Critics have raised environmental and resource allocation concerns. Opposition figures point to potential conflicts over water availability during the Philippine dry season, which overlaps with peak agricultural irrigation needs. There are also questions about land acquisition from farming communities to support solar panel installations. Additionally, the project’s location overlaps with ancestral domain claims held by Aetas communities, historically recognized as among the archipelago’s earliest inhabitants. A final bilateral agreement between the United States and the Philippines is scheduled for signing in November.
Government officials characterize the initiative as an economic opportunity for the Philippines to participate in emerging technology sectors. U.S. representatives have framed the partnership as beneficial to Philippine development and infrastructure capacity. However, academic and advocacy figures argue that the Philippines faces disproportionate risk among participating nations, particularly regarding resource depletion and environmental degradation relative to longer-term economic benefits.
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