Taiwan is well known for its information and communications technology (ICT) industry, especially in making semiconductors and packaging integrated circuits (ICs). Taoyuan, a city in Taiwan, plays a major role by being responsible for 90% of high-end AI server shipments. The city has various industrial sectors, including advanced medical technology, aerospace, the Internet of Things (IoT), and smart logistics, creating a strong supply chain for the AI field.
Taoyuan’s location is advantageous, thanks to its excellent shipping facilities, ocean transport connections, and extensive road networks. This makes it a central hub for logistics, attracting investments from big companies like Microsoft, Supermicro, and aircraft parts supplier NORDAM. Moreover, half of NVIDIA’s 43 key suppliers are located in Taoyuan, providing crucial technologies and components for AI server production around the world.
The city has also upgraded its logistics and transportation with smart technologies, which has positively impacted the global semiconductor supply chain. This combination of advanced tools and skills has made Taoyuan a competitive industrial center globally.
Being near major ports, including the Port of Taipei, and having Taiwan’s only international airport with fast customs clearance strengthens Taoyuan’s logistics position. The city has the highest number of warehousing and logistics facilities in Taiwan, making it very competitive on the international stage.
The Farglory Free Trade Port Zone in Taoyuan is the world’s first multifunctional free trade area that allows both local and international operations. It operates 24/7 and provides logistics, cold chain, and aviation services. The zone includes cargo terminals, value-added parks, warehousing, and offices, allowing businesses to carry out various processing tasks easily. Companies in this area enjoy simpler customs processes, tax benefits, and flexible hiring options for foreign workers.
The connection of the Aviation City with nearby industrial zones helps make air cargo and global logistics more efficient. This teamwork allows manufacturers to optimize their production and supply chains. As a result, Taoyuan has become a preferred spot for investment from well-known companies. For example, ASML has chosen Taoyuan as its logistics base for the Asia-Pacific region, benefiting from its proximity to semiconductor centers like Hsinchu, Taichung, and Tainan, as well as supporting semiconductor clusters in places like Kumamoto, Japan, and Gyeonggi-Do, South Korea.
Overall, Taoyuan’s advantages and infrastructure have made it a vital part of the global AI supply chain, contributing importantly to the growth and integration of the industry.
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