Nvidia explores alternative Taiwan HQ sites amid surface rights impasse

Taipei, Oct. 9 (CNA) U.S. artificial intelligence chip giant Nvidia Corp. is seeking an alternative site for its new Taiwan headquarters after its plan to build at the Beitou-Shilin Science Park in Taipei ran into difficulties.

Minister of Economic Affairs Kung Ming-hsin (龔明鑫) confirmed Wednesday that the ministry had received Nvidia's request a day earlier to provide alternative sites meeting its requirements by Oct. 24.

At Computex in May, Nvidia CEO Jensen Huang (黃仁勳) announced the firm's intention to establish a new headquarters, called Nvidia Constellation, at the Beitou-Shilin Science Park. The Taipei City government later confirmed Nvidia's preferred locations as T17 and T18 plots, covering 3.89 hectares in the park, to which Shin Kong Life Insurance has held the surface rights since 2022.

Under a 2021 agreement between Taipei City government and Shin Kong Life, Shin Kong Life is prohibited from transferring its surface rights before completing construction and obtaining building use permits for the site.

Although Shin Kong Life has expressed a willingness to directly transfer the surface rights to Nvidia, the city government has maintained that such a move would violate the existing contract.

On July 10, city government officials reiterated in writing that a direct transfer would contravene contractual obligations.

To resolve the stalemate, the city proposed two options: Shin Kong Life could construct the planned buildings and secure use permits before transferring the surface rights, or both sides could terminate the contract by mutual consent, enabling the city to reissue the surface rights to Nvidia under an updated legal framework.

Citing its 50-year surface rights to the two plots, Shin Kong Life has opposed terminating the contract, arguing that current compensation proposals would not offset the expected long-term revenue. However, the city government has rejected proposals that would allow Shin Kong to profit from a direct transfer to Nvidia.

On Oct. 2, Shin Kong said Nvidia had indicated it would refuse to finalize the transfer after construction is completed, citing legal advice that a direct transfer would not violate related regulations.

On the same day, Taipei Deputy Mayor Lee Shu-chuan (李四川) said Nvidia wants the city to reissue the surface rights to it after the city government and Shin Kong Life agree to terminate the contract, but Shin Kong Life has yet to clarify the conditions under which it would do so.

Amendments to related regulations are also required for the Taipei City government to avoid suspicion of illegally benefiting Nvidia.

Kung said Friday that all relevant agencies had received instructions from President Lai Ching-te (賴清德) and Premier Cho Jung-tai (卓榮泰) to provide Nvidia with comprehensive support, and that proposed amendments have been submitted to the Cabinet for review.

As alternatives, Lee has proposed the T12 plot within the park, while Kung confirmed that the central government is identifying other potential sites, including the Songnan Barracks in Taipei's Minsheng community.

Officials in New Taipei, Kaohsiung, Tainan, and other cities have also offered to host Nvidia's headquarters, presenting various site and incentive packages. However, "T17 and T18 remain Nvidia's preferred sites. These alternatives are just backup plans," Kung said.