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🇹🇼 Taiwan /Economy & Trade

NVIDIA's Taiwan Supply Chain Invests Over $130 Billion in Real Estate Amid AI Boom

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Taiwan's commercial real estate market is booming, driven by AI companies and their supply chains.
  • NVIDIA's Taiwanese supply chain partners have invested over $130 billion (NT$4 trillion) in commercial and industrial properties since 2024.
  • Demand for factories, particularly those with cleanroom facilities, is high, with supply struggling to keep pace.

Taiwan's commercial real estate sector is experiencing a significant surge, largely fueled by the booming AI industry and its extensive supply chain. Companies linked to NVIDIA alone have invested a staggering NT$130.4 billion (approximately $4 billion USD) in commercial and industrial properties between 2024 and the first half of this year.

Currently, the main buyers of commercial real estate are in the technology industry.

— Lin Ching-chaoLin Ching-chao, General Manager at CBRE, described the primary drivers of the current commercial real estate market in Taiwan.

CBRE's General Manager, Lin Ching-chao, highlighted that the technology sector is the primary driver of commercial property acquisitions. These tech firms are actively seeking out and acquiring existing factory spaces, a trend described as "factory hunting." This intense demand is outpacing the available supply, particularly for facilities equipped with essential infrastructure like cleanrooms, which allow for quicker production startup compared to building from scratch.

Research from CBRE indicates that ten Taiwanese suppliers within NVIDIA's ecosystem have collectively purchased NT$110 billion (around $3.4 billion USD) in industrial properties. Each of these individual investments exceeded NT$1.5 billion (approximately $46 million USD).

The supply chain group for NVIDIA in Taiwan is quite large. Ten companies have jointly invested NT$110 billion in industrial real estate, and any single company's investment exceeds NT$1.5 billion.

— Li Chia-pinLi Chia-pin, Head of Research at CBRE, detailed the significant investments made by NVIDIA's Taiwanese suppliers in industrial properties.

Overall, the market for large-scale land and commercial property transactions in Taiwan saw a 41% year-on-year increase in the first half of 2024, reaching NT$218.8 billion (about $6.7 billion USD). Commercial property transactions specifically surged by 92% to NT$126.6 billion (around $3.9 billion USD), while land purchases decreased by 28%. The factory and logistics property market was particularly robust, with sales volume soaring by 179% to NT$96.8 billion (approximately $3 billion USD) in the first half of the year, surpassing the entire previous year's total.

Benefiting from the continued AI wave, international major manufacturers' demand for Taiwan's information and communication products has greatly increased, prompting related companies to accelerate their expansion plans.

— Chiang Chao-hsuanChiang Chao-hsuan, Senior Director at CBRE Capital Markets, explained the factors driving the expansion of the information and communication technology sector in Taiwan.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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