Taipei: The Taipei City government has finalized a deal to terminate a land use contract with Shin Kong Life Insurance, facilitating the establishment of AI chip designer Nvidia Corp.'s Taiwan headquarters in the city, Mayor Chiang Wan-an announced.
According to Focus Taiwan, the mayor declared that the contract termination means the rights to plots T17 and T18 in the Beitou Shilin Technology Park have reverted to the city government. This development allows the city to proceed with negotiations with Nvidia, with the aim to finalize a contract before the Lunar New Year, enabling construction to commence by mid-next year.
The conclusion of the contract marks the end of negotiations between the city government and Shin Kong Life, which commenced in June when Nvidia expressed interest in the site for its headquarters. Shin Kong Life had acquired the land's surface rights in 2021 through a public tender but had not initiated any development.
The Taipei City government opposed the direct transfer of these rights to Nvidia, citing concerns over potential profiteering, and sought a mutual termination of the contract. Initially, Shin Kong Life resisted, arguing that such an action could harm its long-term interests and breach trust with its board. However, on October 22, the insurer agreed to terminate the contract, provided it received compensation for incurred costs, proposing a fee of NT$4.47 billion (US$142.02 million).
Subsequently, on November 12, the Taipei City Council approved a revised termination fee of NT$4.43 million, which Shin Kong Life's board of directors accepted last Friday.