Mandatory Disclaimers
- These views and opinions are solely my own and do not represent the companies I work for.
- These are written from the perspective of a practicing software engineer and a business owner in the IT space, not an expert in law, taxation, or geopolitics.
- I hate both the Marcoses and the Dutertes.
So, Are You Pro or Anti-Pax Silica?
The media-trained student organization leader in me says no to Pax Silica. I grew out of that phase and became more of a big-picture person, so my tone has softened. It’s no longer a hard no, but a no nonetheless. I know how that would sound to most people, considering what they know me for, but give me a second here to paint you a picture.
It’s 2026. The world is in an arms race for innovation in AI and semiconductors. Mainland China has an extremely perverted view of Taiwan, wanting to claim it for itself under the guise of unification. Mindanao wants to secede because of the chaotic nature of its existence. Donald Trump is sanctioning everyone, including allies, for seemingly no reason because he’s mad that the state of the world puts America in charge of almost everything, a system the Americans designed in the first place.
The Local Context
The Philippines, plagued by what feels like six years of tribulation (and if election survey results are anything to go by, the universe is saying, “Here’s six more years of hell on Earth”), is at a crossroads.
The impeachment of the current vice president is a false sense of comfort. Whether she goes or not, the Duterte name is too big to fail. They’ll get a brother to run in her place if she gets impeached, and she’ll run herself if she survives, which is looking more likely by the day.
President Marcos Jr., because I refuse to use his stupid popular name (seriously, what the hell?), is seen as a weak leader by most. With the shitshow happening left and right, from the flood control scandal to secession threats and the proliferation of fake news, he needed a win.
Enter Pax Silica.
Pax Silica’s Goals
- A US-led initiative to counter China’s dominance in the supply chain for semiconductors, rare earth elements, and AI.
- To establish new processing centers for mineral extraction and processing, chip design and manufacturing, artificial intelligence research, and other related fields.
- Primarily, to counter the world’s dependence on China in critical technology supply chains.
While it looks like a great project on paper, it’s not entirely innocent.
It’s been well documented throughout the world, and particularly in American cities, that the construction of data centers can have significant effects on the way of life and ecology of an area. News of dirty water, low water pressure, noise pollution, and high energy costs can make neighborhoods less livable.
So the proper question to ask here is: do the benefits outweigh the consequences?
My answer to this would unfortunately be yes, but with reservations.
But Wait, Isn’t the Politically Correct Answer a Hard #NoToPaxSilica?
Oh, believe me, I understand. And initially, my answer was a hard no too. The environmental dangers and problems this could bring could severely and irreparably damage wherever it ends up, which is currently planned to be in New Clark City.
However, there are bigger issues at play. It’s more complicated than a simple yes-or-no answer.
The Territorial Disputes
There is a reason why China can’t just walk into Taiwan and take it over: Taiwan manufactures a significant share of the world’s chips, and its semiconductor industry is strategically important to the United States. Without nuclear weapons, this acts as a huge deterrent that helps protect Taiwan’s sovereignty.
If the government plays this smart, we can potentially ask for the same benefits.
If America wants to use New Clark City as its Asian hedge against the Chinese sphere of influence, it better step up and protect its interests by protecting Philippine sovereignty.
Unfortunately, it seems like the New Clark City location is being handed to America on a silver platter. It may not have been sold, but around 4,000 acres have been earmarked for the initiative. Not a bad move considering the potential economic benefits, but we could have demanded more.
It may contribute to job generation, but we’re talking about Philippine labor wages. It’s not on par with Western labor, and we also have to think about how much of that value stays within the Philippines.
AI Is Inevitable
I say this as an IT professional. AI is here to stay, and it will only get better.
Which makes it worse for everyone else.
In a couple of years, we leapt from LLMs that hallucinated every other word to systems that can actually change how organizations are structured, how employees compete in the job market, and how energy is allocated and subsidized.
Pax Silica puts the Philippines on the map for the future.
If we deny this project simply because of our innate fear of change, we will be left behind.
The Energy Costs
Even without Pax Silica, we have problems with how MERALCO bills us: extremely high costs per kilowatt-hour, among the highest in ASEAN, system-loss charges, illegal jumper setups, and sanctions against the unregulated use of solar energy.
Not to mention the severe disinformation campaign that makes people believe nuclear energy is dangerous.
If we are to get on board with this initiative, there should be some guarantees in this sector:
- Make electricity more affordable and accessible.
- Counter the misinformation campaign against nuclear energy and get nuclear plants started.
- Encourage and incentivize renewable energy usage.
But most importantly, nationalize MERALCO.
But that’s a rant for another day.
The Verdict
Pax Silica is a deterrent and a potential guarantee that the Philippines is taking a step in the right direction for the future.
If, and only if, the energy, environmental, and ethical concerns are addressed, then the answer to the initiative should be a resounding yes.
Until then, the government needs to get its shit together, give this project a hard look, and allow more time for proper evaluation.