‘What will happen to us?’ Philippine ancestral lands at risk from US$70b foreign tech hub

In Capas, the Aeta Hungey tribe has called the expansive grasslands their home for generations, yet they remain uncertain about the impact of a foreign tech hub on their ancestral lands. Tribal leader Petronila Munoz expressed her tribe's concerns, stating that there is still no clarity on how much of their territory could be affected or what the future holds for their livelihood.

The United States recently announced that the Philippines had joined Pax Silica, a US-led effort to enhance semiconductor and rare earth element supply chains. A designated 1,620-hectare site in New Clark City, Tarlac province, is earmarked for a manufacturing hub aimed at producing high-end components for AI data centers. This initiative could attract up to US$70 billion in investment and create approximately 190,000 jobs.

The project, however, is at a nascent stage, with no tenants confirmed, and processing the country's mineral resources domestically might take even longer. In July, the tribe received a letter from the Bases Conversion and Development Authority (BCDA) warning that the project could impact their occupied lands. BCDA employees instructed the Aetas to vacate their homes by December and relocate 16 kilometers away, without providing a detailed plan of the affected territories.

The BCDA offered to compensate the tribe with just 30 pesos (US$0.48) per square meter, which was declined by all. According to Munoz, land is more vital than money, as it is tied to their culture and livelihood. The BCDA declined to comment on the Aetas' situation and refused a freedom of information request for official boundary maps and geospatial data.

At a Senate hearing, BCDA president Joshua Bingcang claimed the Aetas were residing on government land, though they possess no land title. Civics groups have voiced concerns about the project's environmental implications, particularly water and electricity demands in a drought-prone country. A BCDA spokesperson assured that "environmental, water, energy, and community-impact studies" would guide the project's design.

Bingcang noted that investors would need to construct their own power and water systems. Alvin Camba, a research director at an AI firm specializing in supply chains and risk assessment, believes the US-Philippines relationship could motivate investors to establish operations despite the power concerns. Washington might warn countries against joining a rival framework led by China.

Political economist Calixto Chikiamco views Pax Silica as a historic chance for the Philippines to break away from its conventional role in microchip testing and packaging, encouraging foreign investment to foster technology transfer. Despite the BCDA's public consultations, Munoz's tribe remains in the dark about how the government intends to assist them in building new homes or providing alternative land for income if displaced.