Shin Kong Life, Taipei terminate land deal, clearing way for Nvidia HQ

Taipei, Nov. 24 (CNA) The Taipei City government has completed a deal to terminate a land use contract with Shin Kong Life Insurance, clearing the way for AI chip designer Nvidia Corp. to build its Taiwan headquarters in the city, Mayor Chiang Wan-an (蔣萬安) said Monday.

"Today, I want to formally announce that we have completed the contract termination, meaning that the rights to plots T17 and T18 [in the Beitou Shilin Technology Park] have returned to the city government," Chiang told reporters at an event in Taipei.

"Moving forward, we will quickly enter into talks with Nvidia. We expect to sign a contract with Nvidia before the Lunar New Year [in mid-February], allowing construction to begin by the middle of next year," Chiang said.

Chiang's announcement ended months of negotiations between the city government and Shin Kong Life over the land rights, which began in June when Nvidia confirmed it was seeking the site for its Taiwan headquarters.

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

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.

On Oct. 22, however, Shin Kong Life announced its willingness to terminate the contract, contingent on reimbursement for costs already incurred. It later proposed a termination fee of NT$4.47 billion (US$142.02 million).

On Nov. 12, the Taipei City Council approved its review of the agreement with a revised fee of NT$4.43 million, which was then approved by Shin Kong Life's board of directors last Friday.