Nvidia Corp’s plan to build its new headquarters at the Beitou Shilin Science Park’s T17 and T18 plots has stalled over a land rights dispute, prompting the Taipei City Government to propose the T12 plot as an alternative. The city government has also increased pressure on Shin Kong Life Insurance Co, which holds the development rights for the T17 and T18 plots.
The proposal is the latest by the city government over the past few months — and part of an ongoing negotiation strategy between the two sides. Whether Shin Kong Life Insurance backs down might be the key factor in determining whether Nvidia’s headquarters remains in Taipei.
Shin Kong Life Insurance has reportedly demanded NT$14 billion (US$459 million) in total compensation for terminating the development rights contracts — a figure that includes both royalties and the estimated revenues from the 50-year rights agreement it holds with the city government.
In turn, the Taipei City Government is attempting to toss the burden onto the Taipei City Council, suggesting that Shin Kong Life Insurance submit a formal proposal, cooperate with budget preparation and forward it for review — essentially asking councilors to play the role of bad cop. Aware that doing so would make it the target of fierce political attacks, Shin Kong Life Insurance knows well that such a path would lead to a dead end.
The Taipei City Government did not agree to Shin Kong Life Insurance’s proposal to hand the land rights directly over to Nvidia to handle the project after four years of stagnation, thereby blocking the insurer’s attempt to play landlord and collect rent risk-free — a decision that is legally justified.
The central government has already given the green light to reassign land development rights for special projects to designated enterprises following contract termination, making every possible effort to ensure that Nvidia gets its preferred location.
Whether by distancing itself and deflecting responsibility onto the city council, or by trying to keep the peace by offering alternative plots in the science park, the city government has demonstrated that it either does not dare or is unwilling to stand up to Shin Kong Life Insurance — thereby reinforcing Taipei Mayor Chiang Wan-an’s (蔣萬安) reputation as a weak and incapable leader.
Shin Kong Life Insurance also holds the rights to the build-and-operate project at Nangang Bus Station, which has similarly fallen far behind schedule. Chiang has many administrative tools at his disposal and ample room to maneuver.
Chiang could roll up his sleeves and step in, actively coordinating with representative organs to reach a consensus on reasonable terms of compensation that would allow the company a dignified way out. In the end, the other party would eventually understand that backing down would bring the best possible outcome for everyone involved.
The person least qualified to criticize others is former Taipei mayor Ko Wen-je (柯文哲). As he once said in reference to the ongoing Core Pacific City corruption case, “letting go would have cost NT$10 billion.” Ko even sarcastically accused the prosecution of creating a chilling effect, saying: “How would Nvidia dare come here now?” His remarks completely distort the facts and blur right from wrong.
In September last year, the Taipei City Council’s special investigation team released the final draft of a report identifying eight major flaws in the Beitou Shilin Science Park project, accusing the Ko administration of “relaxing bidding conditions to favor specific conglomerates.” The Taipei District Prosecutors’ Office has since listed Ko as a defendant in a separate ongoing investigation.
However, with the Core Pacific City case dominating public attention, progress on the Beitou Shilin Science Park probe has gone largely unnoticed. Chiang should take the initiative and publicly pledge full cooperation with the investigation, as pressuring the judiciary to expedite the case could be another path to resolving the impasse.
The development project for Nvidia’s new headquarters must not become another Core Pacific City scandal that benefits only large conglomerates, nor should it devolve into a mismanaged and drawn-out mess, as was the case with the Taipei Dome.
If Taipei residents, Nvidia and Shin Kong Life Insurance all lose in the end — causing the city to miss out on massive opportunities in artificial intelligence infrastructure — then Chiang would go down in history as the man who delayed the transformation and modernization of our nation’s capital.
Chen Yung-chang is a freelance writer based in Taipei.
Translated by Kyra Gustavsen
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