United Parcel Service has opened a $100 million logistics hub in Taoyuan, Taiwan-the company’s largest in the Asia Pacific-amid surging demand from tech giants. The facility, located near Taiwan’s main international airport, serves as a critical node for high-tech freight, with 80% of shipments linked to semiconductors.

Taiwan hosts TSMC, the world’s leading contract chipmaker, whose advanced manufacturing fuels AI innovation globally. Applied Materials, the top U.S. semiconductor equipment supplier, will use the site as an Asian distribution center.

Lauren Zhao, UPS Asia Pacific Supply Chain Solutions president, affirmed Taiwan’s unmatched leadership in semiconductor production. UPS is also evaluating expanded air service to Kaohsiung, where TSMC is building a major new fab as part of a growing southern Taiwan semiconductor cluster.