Taoyuan is carving out a dedicated industrial zone for high-end chip packaging materials, good news for Taiwan's chip supply chain and for local firms racing to meet AI demand.

• Taoyuan will set aside 40 hectares in the first phase of its Aerotropolis industrial land for advanced IC substrate makers.
• Ground-clearing alongside companies could start as early as 2028, with land handed over zone by zone so builders can start sooner.
• Substrate makers are returning to Taiwan or expanding here because AI chips need far more of these parts.
• Land will be offered as long-term leases rather than outright sales, so companies spend less cash upfront and more on equipment and research.
• Power and water are the sticking point: the city is helping firms secure extra-high-voltage supply and pushing Taipower to speed up new substations.

Outlook: Taoyuan expects to sign cooperation agreements with the circuit board trade group and makers including Unimicron and Kinsus in October, with the last land clearances finishing by mid-2027.