Taipei clears way for Nvidia HQ with Nov. 14 land deal termination

Taipei, Nov. 8 (CNA) Taipei Deputy Mayor Lee Shu-chuan (李四川) said Saturday that the city government is set to terminate a land use contract with Shin Kong Life Insurance on Nov. 14, clearing the way for AI chip designer Nvidia Corp. to build its Taiwan headquarters in the city.

Lee said a termination fee has been reviewed by accountants from both the city government and Shin Kong Life. The city government will submit the proposed fee and related documents to the Taipei City Council on Nov. 10, with the aim of securing approval during the Nov. 12 session.

Earlier this week, Lee said Shin Kong Life proposed a payment of NT$4.47 billion (US$144 million) for the termination of the land use in the Beitou Shilin Tech Park, describing the price as "reasonable" compared with the city's estimate.

The city government has sent a draft termination agreement to Shin Kong Life's lawyers for review, and the insurer is expected to hold a special board meeting on Nov. 13 or 14 to discuss the matter. Both sides are expected to sign the agreement by Nov. 14, Lee said.

After the termination, the city government will begin procedures to transfer the land's surface rights starting Nov. 17 to officially reclaim the site, Lee said.

The city government and Shin Kong Life have been at odds over the plot in the Beitou tech park since Nvidia CEO Jensen Huang (黃仁勳) announced in May that the company had selected it for its Taiwan headquarters.

Shin Kong Life obtained the land's surface rights in 2021 after winning a public tender but has yet to begin development.

The city government objected to allowing the insurer to directly transfer the rights to Nvidia, citing concerns about potential profiteering, and requested a mutual contract termination.

The insurer initially argued that ending the contract could be seen as a breach of trust by its board because it would harm the company's long-term interests.

However, on Oct. 22, Shin Kong Life announced its willingness to terminate the contract, contingent on reimbursement for costs already incurred.

When he arrived in Taipei on Friday, Huang said he hoped the land issue could be resolved smoothly so Nvidia could construct "a beautiful building" in Taipei.

Lee said he aims to sign a new land use contract with Nvidia early next year once the company submits its investment plan.