Taiwan is a global leader in the information and communications technology (ICT) industry, boasting the world's highest output value in semiconductor foundry and IC packaging and testing. Taoyuan, in particular, plays a pivotal role, accounting for 90% of the shipments of high-end AI servers. Its diversified industrial clusters encompass intelligent medical technology, aerospace, the Internet of Things (IoT), and smart logistics, creating a robust and well-integrated supply chain for the AI industry.
Taoyuan's strategic geographic location, coupled with its advanced shipping, maritime transportation, and outbound road network, has made it a hub for cross-border logistics carriers. This infrastructure has attracted investments from global industry leaders such as Microsoft, Supermicro, and aircraft parts supplier NORDAM. Notably, half of NVIDIA's 43 key suppliers are based in Taoyuan, contributing critical technologies and components to the global production of AI servers.
The city's logistics and transportation capabilities have been further enhanced by the adoption of intelligent logistics technologies, significantly impacting the global semiconductor supply chain. This integration of cutting-edge equipment and expertise has solidified Taoyuan's position as a globally competitive industrial powerhouse.
Taiwan's Leading Logistics Hub Driving the AI Supply Chain
Taoyuan is close to major ports such as the Port of Taipei and has the only international airport in Taiwan that allows for express customs clearance, the highest density of warehousing and logistics in the nation, and a logistics and transportation system that leads the way in terms of international competitiveness.
As the location of the Farglory Free Trade Port Zone, Taoyuan, as the world's first multi-functional "within and outside the border" free trade port zone, provides 24-hour logistics, cold chain, and aviation and other integrated services, and has a cargo terminal, a value-added park, and warehousing and office buildings, With the cargo terminal, value-added park, warehousing, and office buildings, air cargo express warehouse, cold chain logistics zone and integrated international logistics center, enterprises in the park can engage in simple processing, deep processing and 19 types of value-added operations, and they can also enjoy a number of preferential measures, such as convenient customs clearance, preferential taxation and more flexible hiring ratios of foreign workers, etc.
The combination of the Aviation City and the neighboring industrial zones to form a "front store, back factory" and "inbound and outbound" mode of operation facilitates the speedy operation of air cargo and global logistics integration. This facilitates the rapid operation of air cargo transportation and the integration of global logistics, which helps the resident manufacturers to integrate their production and upstream and downstream supply chains and has gradually become a popular choice for the investment layout of internationally renowned manufacturers in recent years. For example, ASML has chosen Taoyuan as its logistics base in the Asia-Pacific region because of its proximity to the semiconductor bases in Hsinchu, Taichung, and Tainan, as well as its advantageous transportation location that can easily support the semiconductor clusters in Kumamoto, Japan, and Gyeonggi-Do, South Korea.
To expand its logistic network in Taiwan, Coupang will open two large-scale logistics centers in the Evergreen Dayuan logistics park in 2022 and 2023. DHL will move into the International Logistics Park in Taoyuan in 2024 in order to expand its business layout and meet the needs of the semiconductor and medical industries, demonstrating that international logistics giants attach great importance to Taoyuan's transportation and logistics system.
In addition, the Taoyuan Airpark Free Trade Zone can also engage in trading, customs clearance, assembly, processing, manufacturing, inspection, and testing. There are 19 businesses which also enjoy exemption from customs duties and goods taxes, etc. Whether it is upstream chips and embedded components, midstream industrial computers, communications equipment, and server components, to cloud, IoT solutions, etc. in the downstream, enterprises will benefit from Taoyuan's logistics and transportation system, which will enhance the global competitiveness of the domestic import and export-related industries.