Taipei: Taipei Deputy Mayor Lee Shu-chuan announced that the city government is prepared to terminate a land use contract with Shin Kong Life Insurance on Nov. 14, facilitating the establishment of AI chip designer Nvidia Corp.’s Taiwan headquarters. The decision marks a significant development in the Beitou Shilin Tech Park, where Nvidia plans to build its new facility.

According to Focus Taiwan, the termination fee has been thoroughly reviewed by accountants from both the city government and Shin Kong Life. The proposed fee, along with related documents, is scheduled to be submitted to the Taipei City Council on Nov. 10. The aim is to secure council approval during the Nov. 12 session, ensuring a smooth transition for the land’s usage.

Earlier discussions revealed that Shin Kong Life proposed a payment of NT$4.47 billion (US$144 million) for the termination, a figure deemed “reasonable” when compared to the city’s estimate. The city government has already forwarded a draft termination agreement to Shin Kong Life’s legal team for review. The insurer is expected to conduct a special board meeting on Nov. 13 or 14 to deliberate on the matter, with both parties anticipated to finalize the agreement by Nov. 14.

Post-termination, the city government plans to initiate procedures to reclaim the site’s surface rights starting Nov. 17. This step is essential for officially transferring the land, which has been a point of contention since Nvidia CEO Jensen Huang announced in May that the location was chosen for Nvidia’s Taiwan headquarters.

Shin Kong Life had originally acquired the land’s surface rights in 2021 after winning a public tender but had yet to commence development. The city’s objection to the direct transfer of rights to Nvidia was based on concerns over potential profiteering, leading to a request for mutual contract termination.

Initially, Shin Kong Life resisted the termination, arguing it could jeopardize the company’s long-term interests. However, on Oct. 22, the insurer expressed willingness to end the contract, contingent on reimbursement for incurred costs.

During his recent visit to Taipei, Nvidia CEO Jensen Huang expressed hope for a smooth resolution of the land issue, envisioning the construction of “a beautiful building” in Taipei. Deputy Mayor Lee further stated his intention to finalize a new land use contract with Nvidia early next year once the company submits its investment plan.