Taipei: The dispute over U.S. chipmaker Nvidia Corp.’s preference to build its Taipei office on a plot of land in Beitou has moved toward resolution, as local firm Shin Kong Life Insurance Co. announced its willingness to relinquish the surface rights. Shin Kong Life Insurance Chairman Mark Wei revealed at a press conference on Wednesday that the board decided to terminate the contract with Taipei City government, conditional on the reimbursement of land development costs.
According to Focus Taiwan, Shin Kong Life took the initiative to end the deadlock and facilitate Nvidia’s plans for the land. The meeting occurred after Nvidia requested that the Ministry of Economic Affairs and Taipei City government propose alternative plots by Friday, in case the insurer declined to terminate the contract for the 3.89-hectare T17 and T18 plots in Beitou Shilin Technology Park.
Shin Kong Life secured the bid for the site’s surface rights in 2021, intending to construct a tech and commercial office complex. However, Nvidia later singled out the site as the ideal location for its new Taiwan headquarters. The situation had been at a standstill for months, since Nvidia CEO Jensen Huang in May announced the choice of “Beitou Shilin” for the company’s new Taiwan office.
The city government opposed the insurer’s plan to directly transfer the rights to Nvidia, citing concerns over potential profiteering, and called for a mutual contract termination instead. Shin Kong Life, however, preferred a direct transfer to Nvidia due to concerns that the compensation involved in a contract termination could be seen as a breach of trust by its board of directors.
Wei assured reporters that the board’s discussions had focused on the risk of a breach of trust, but legal counsel confirmed that it would not be an issue. The company made the decision “for the greater good of the country,” sacrificing its original planned investment profits.
Previous estimates provided by Taipei Deputy Mayor Lee Shu-chuan indicated that the city government will reimburse the NT$3.3 billion (US$107.29 million) upfront lease payment made by the insurer, along with additional compensation of NT$500 million to NT$800 million for contract termination.
Wei mentioned the possibility of proposing to the board that any compensation received from the city government be allocated to public interest projects, although discussions with Lee have yet to occur.
Later on Wednesday, Taipei Mayor Chiang Wan-an confirmed the city government’s intent to meet with Shin Kong Life as soon as possible to negotiate the contract termination. Additionally, Minister of Economic Affairs Kung Ming-hsin stated that the ministry will offer Nvidia over 10 potential alternatives for its new Taiwan office, responding to the U.S. tech firm’s request for options by Friday.