Taipei’s deputy mayor Lee Shu-chuan confirmed that the city plans to cancel its land use agreement with Shin Kong Life Insurance on November 14, a step that would open the site for Nvidia (NVDA) to establish its Taiwan headquarters, CNA reports.

Accountants representing both parties have reviewed the termination fee. Taipei authorities will present the proposed compensation and supporting papers to the City Council on November 10, seeking approval at the November 12 meeting.

Taiwan sits at the heart of the global semiconductor and AI supply network. Securing Nvidia’s headquarters strengthens Taipei’s position as a strategic player in the next wave of AI and advanced chip development, boosting long-term economic and technological influence.

Lee noted that Shin Kong Life suggested a payment of TWD4.47bn ($144mn) to end the existing agreement for the Beitou Shilin Tech Park site, calling the figure reasonable based on the city’s calculations.

A draft termination agreement has already been sent to the insurer’s legal representatives. Shin Kong Life is expected to hold a special board meeting on November 13 or 14 to deliberate, with both parties planning to sign the final document on November 14. From November 17, the city will begin the formal process to reclaim the land’s surface rights.

The dispute began after Nvidia CEO Jensen Huang announced in May that the company had chosen the Beitou Shilin Tech Park as the location for its Taiwan base. Shin Kong Life had secured the surface rights in 2021 following a public tender but had not started construction. Taipei objected to a direct transfer of rights to Nvidia, citing concerns that the insurer could profit unfairly, and instead demanded a mutual termination.

Shin Kong Life initially resisted, saying cancellation could harm the company’s long-term interests. However, on October 22, the insurer agreed to end the contract if compensated for its expenses.

Arriving in Taipei on November 7, Huang expressed hopes for a smooth resolution so Nvidia can construct “a beautiful building” in the city. Lee aims to sign a new land use contract with Nvidia early next year once the firm submits its investment plan.

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