Insurer to end Taipei land contract, clearing way for Nvidia Taiwan HQ

Taipei, Oct. 22 (CNA) The dispute over U.S. chipmaker Nvidia Corp.'s preference to build its Taipei office on a plot of land in Beitou, the surface rights for which are owned by Shin Kong Life Insurance Co., is likely resolved, after the local firm on Wednesday indicated a willingness to relinquish those rights.

Shin Kong Life Insurance Chairman Mark Wei (魏寶生) announced at a 4:30 p.m. Wednesday press conference that the board has decided to terminate the contract with Taipei City government, contingent upon the reimbursement of land development costs.

The company took the initiative to resolve the impasse and clear the way for Nvidia to use the land, Wei told reporters.

● Nvidia explores alternative Taiwan HQ sites amid surface rights impasse

The meeting was held following news that Nvidia had asked the Ministry of Economic Affairs and Taipei City government to propose alternative plots by Friday, should the insurer refuse to terminate the contract for the 3.89-hectare T17 and T18 plots in Beitou Shilin Technology Park.

Shin Kong Life won the bid for the site's surface rights in 2021 and had planned to build a tech and commercial office complex. However, Nvidia later identified the site as the preferred location for its new Taipei headquarters.

The case has been deadlocked for the past few months, since Nvidia CEO Jensen Huang (黃仁勳) in May announced the selection of "Beitou Shilin" for the company's new Taiwan office.

The city government rejected the insurer's plan to directly transfer the rights to Nvidia, citing concerns over potential profiteering. Instead, it requested the insurer agree to a mutual contract termination.

Shin Kong Life, on the other hand, preferred a direct transfer to Nvidia out of concern that the compensation involved in a contract termination could be considered a breach of trust by its board of directors.

Wei told the press conference that the potential for a breach of trust was a key focus of the board's discussion, but legal counsel had assured them that the issue would not arise.

The company made this decision "for the greater good of the country," thus giving up the chance for its original planned investment profits, he said.

● Taipei seeks to end land use contract, keep Nvidia Taiwan HQ in city

According to previous estimates provided by Taipei Deputy Mayor Lee Shu-chuan (李四川), the city government will reimburse the NT$3.3 billion (US107.29 million) upfront lease payment paid by the insurer, along with additional compensation of NT$500 million to NT$800 million for the termination of the contract.

Wei said he will consider proposing to the board that any compensation received from the city government be dedicated to public interest projects, although he has yet to discuss the matter with Lee.

At around 6 p.m. Wednesday, Taipei Mayor Chiang Wan-an (蔣萬安) told reporters that the city government will sit down with Shin Kong Life at the earliest possible time to negotiate the contract termination.

Also on Wednesday, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said the ministry will present Nvidia with over 10 potential options for its new Taiwan office, responding to the U.S. tech firm's request on Oct. 7 that alternatives be provided by Friday.