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UPS Launches $100M Taiwan Hub to Handle Booming Tech Industry Demand

Wednesday, March 25, 2026 at 6:22 AM

United Parcel Service has unveiled a massive $100 million logistics facility in Taiwan, marking its biggest operation in the Asia Pacific region. The new center will primarily handle high-tech shipments, capitalizing on Taiwan's dominance in semiconductor manufacturing and the growing artificial intelligence industry.

TAOYUAN, Taiwan – Shipping giant United Parcel Service unveiled its newest and largest Asia Pacific logistics facility on Wednesday, a $100 million investment designed to capitalize on surging demand from technology companies.

The strategic location takes advantage of Taiwan’s position as headquarters to TSMC, the globe’s leading contract semiconductor manufacturer and primary producer of cutting-edge chips that fuel artificial intelligence advancement.

Located in Taoyuan in northern Taiwan, just minutes from the nation’s primary international airport, the new UPS facility will serve as an Asian distribution hub for Applied Materials, America’s biggest semiconductor equipment manufacturer.

“Around 80% of the freight is high-tech,” Lauren Zhao, president of UPS Asia Pacific Supply Chain Solutions and Freight Forwarding, explained to media during the facility’s opening.

“Everyone knows that Taiwan’s semiconductor industry is the most advanced in the world, and the manufacturing processes related to the semiconductor industry are also where Taiwan is leading the world,” she continued.

Currently, UPS operations are limited to Taoyuan airport, but Sam Hung, the company’s managing director for Japan, South Korea and Taiwan, indicated potential expansion to southern Taiwan’s Kaohsiung airport based on client needs.

The southern city of Kaohsiung hosts TSMC’s construction of a major new manufacturing plant, part of an expanding semiconductor hub being developed in Taiwan’s southern region.

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