Taipei [Taiwan], October 10 (ANI): US artificial intelligence chip giant Nvidia Corp. is seeking an alternative site for its new Taiwan headquarters after its plan to build at the Beitou-Shilin Science Park in Taipei ran into difficulties, according to a report by Focus Taiwan.

The report stated that Minister of Economic Affairs Kung Ming-hsin confirmed that the ministry had received Nvidia's request a day earlier to provide alternative sites that meet its requirements by October 24.

'At Computex in May, Nvidia CEO Jensen Huang announced the firm's intention to establish a new headquarters, called Nvidia Constellation, at the Beitou-Shilin Science Park. The Taipei City government later confirmed Nvidia's preferred locations as T17 and T18 plots, covering 3.89 hectares in the park, to which Shin Kong Life Insurance has held the surface rights since 2022,' the report said.

Citing a 2021 agreement between Taipei City government and Shin Kong Life, the report noted that Shin Kong Life is prohibited from transferring its surface rights before completing construction and obtaining building use permits for the site.

Although Shin Kong Life has expressed a willingness to directly transfer the surface rights to Nvidia, the city government has maintained that such a move would violate the existing contract.

'On July 10, city government officials reiterated in writing that a direct transfer would contravene contractual obligations. To resolve the stalemate, the city proposed two options: Shin Kong Life could construct the planned buildings and secure use permits before transferring the surface rights, or both sides could terminate the contract by mutual consent, enabling the city to reissue the surface rights to Nvidia under an updated legal framework,' the report said.

Citing its 50-year surface rights to the two plots, Shin Kong Life has opposed terminating the contract, arguing that current compensation proposals would not offset the expected long-term revenue. However, the city government has rejected proposals that would allow Shin Kong to profit from a direct transfer to Nvidia.

The report mentioned that on October 2nd, Shin Kong said Nvidia had indicated it would refuse to finalize the transfer after construction is completed, citing legal advice that a direct transfer would not violate related regulations.

On the same day, Taipei Deputy Mayor Lee Shu-chuan said Nvidia wants the city to reissue the surface rights to it after the city government and Shin Kong Life agree to terminate the contract, but Shin Kong Life has yet to clarify the conditions under which it would do so.

Amendments to related regulations are also required for the Taipei City government to avoid suspicion of illegally benefiting Nvidia.

Quoting Kung, the report said on Friday that all relevant agencies had received instructions from President Lai Ching-te and Premier Cho Jung-tai to provide Nvidia with comprehensive support, and that proposed amendments have been submitted to the Cabinet for review.

As alternatives, Lee has proposed another plot within the park, while Kung confirmed that the central government is identifying other potential sites, including the Songnan Barracks in Taipei's Minsheng community.

Officials in New Taipei, Kaohsiung, Tainan, and other cities have also offered to host Nvidia's headquarters, presenting various site and incentive packages. However, Nvidia's preferred previously selected sites. These alternatives are just backup plans the report quoted Kung. (ANI)