Break it Down: Pax Silica

Pax Silica and the Philippines

Pax Silica is described as a U.S.-led effort involving 24 countries to expand U.S. leadership in semiconductors and artificial intelligence, particularly in competition with China. The program argues that these technologies matter not only to the economy but also to military capabilities such as surveillance, intelligence, and targeting.

Potential Benefits and Risks for the Philippines

The commentary questions what the Philippines would gain. The country could supply critical minerals and provide assembly, testing, and packaging services, but it lacks control over more advanced parts of the semiconductor supply chain. The program argues that Pax Silica is unlikely to build a broad industrial base in the Philippines and could instead leave the country supplying resources and labor for foreign interests.

It also challenges promises of one million jobs, $40–70 billion in investment, and large export gains, describing these figures as unrealistic or promotional. It argues that automation would limit employment at AI data centers and that the promised scale of investment is implausible.

Alternative Approach

Rather than choosing between the United States and China, the program urges the Philippines to pursue independent industrialization. It proposes developing an industrial hub across Central Luzon, Metro Manila, and Southern Tagalog, drawing on the region’s workforce, energy, and resources to strengthen Filipino industry.

The program warns that Pax Silica could damage the environment and channel the country’s resources toward enriching the United States.

Presenter: Sonny Africa, IBON Foundation.