United Parcel Service has inaugurated a new logistics center in Taoyuan, northern Taiwan, after investing $100 million in the site. The company says the facility is its largest in the Asia Pacific region and is positioned close to Taiwan's largest international airport to streamline inbound and outbound movements.
Applied Materials (NASDAQ:AMAT), the largest U.S. supplier of semiconductor equipment, will designate the Taoyuan site as an Asian distribution center, leveraging the location for regional supply-chain operations.
Lauren Zhao, president of UPS Asia Pacific Supply Chain Solutions and Freight Forwarding, said the incoming freight profile is heavily weighted to technology shipments, estimating that about 80% of the cargo will be high-tech. Zhao emphasized Taiwan's leading role in advanced semiconductor manufacturing and said the island also leads globally in processes tied to that industry.
Currently, UPS conducts its Taiwan operations out of Taoyuan airport alone. Sam Hung, UPS's managing director for Japan, South Korea and Taiwan, said the company is considering adding flights to Kaohsiung in southern Taiwan subject to customer demand.
The logistics expansion occurs in a market that hosts Taiwan Semiconductor Manufacturing Co. (TPE:2330), the world's leading contract chip manufacturer and a dominant supplier of the advanced semiconductors that underpin recent AI-related hardware demand. Kaohsiung is noted as the location where TSMC is constructing a substantial new factory as part of a growing semiconductor cluster in the island's south.
By placing a large logistics center in Taoyuan, UPS aims to serve a freight base concentrated on high-technology goods and to provide distribution capabilities for major equipment suppliers in the semiconductor ecosystem. The company is keeping its flight network under review and may expand air links to respond to customer needs in the south of the island.
This reporting is limited to the details issued by UPS and company representatives cited. Where described, projections about freight composition, future flight additions and the roles of third-party users of the facility reflect statements made by the company and its regional executives.