Inside UPS' Logistics Centre in Taiwan

UPS has expanded its logistical reach by establishing a new operations centre in Kaohsiung, Taiwan. This facility will offer comprehensive end-to-end logistics services across southern Taiwan, assisting local businesses and organisations in optimising their shipping and delivery capabilities for new technologies.

Streamlining operations for shipments

Situated in the Nanzi district, the Kaohsiung facility will support supply chain management for UPS clients throughout the Nanzi Technology Park, Renwu Industrial Park, Gangshan Industrial Park and Gangshan Beizhou Industrial Park.

To streamline operations for shipments to Taiwan's largest export market, the facility offers a three-hour extension in pickup cutoff times for US-bound exports. This comes amid a surge in Taiwan's exports, driven by increased shipping of semiconductors and other AI technology products. According to the Taiwan Ministry of Finance, June exports grew by 40.3% compared to the previous year, reaching US$74.83bn.

Sam Hung, Managing Director of UPS Taiwan, shared his perspective on the opening of the UPS centre: “When we talk to businesses, what many of them ask for is more hours in a day; more time and flexibility to process orders, prepare shipments and reach more customers. By enabling us to extend pickup cutoff times, this is what the new UPS Kaohsiung centre provides.

“Taiwan is a global hub for high tech innovation. In addition to the established industrial centres in the north, many companies are also now expanding in the south, especially in and around Kaohsiung. UPS is here to support this growth and ensure our customers have the global connectivity they need to build success for the long term.”

AI’s influence in Taiwan

The ongoing dominance of AI in Taiwan's supply chain market is a key factor behind UPS’s decision to open the Kaohsiung facility, an initiative that is also supported by the Taiwan government's Greater Southern Silicon Valley strategy.

The strategy is structured around four fundamental pillars, which include boosting computing capacity, linking the ecosystem, recruiting talent and scaling AI usage. 

As Taiwan currently manufactures most of the world's AI servers, these four pillars are integral to the ongoing efforts to transform the nation into a semiconductor powerhouse. Additionally, plans are underway to establish a semiconductor corridor running from Chiayi to Pingtung.

According to Tai-Hsiang Liao, Director General of the Kaohsiung City Government's Economic Development Bureau, the new UPS facility is set to support “high-tech industry clusters and supply chain customers in Gangshan, Nanzi, Renwu and surrounding areas”. By covering “semiconductors, advanced manufacturing and aerospace”, the facility will assist in creating “stronger cross-border logistics capabilities to southern Taiwan’s high-value industries".

Tai continues: “With more flexible pickup times and end-to-end supply chain management, the centre will help local industries move components and high-quality products to international markets more efficiently and securely, further strengthening Kaohsiung’s strategic role in the global high-end supply chain.”

Before establishing this facility, UPS launched the UPS Taoyuan International Logistics Centre in March. This centre is designed to help customers enhance productivity, operate more efficiently and reinforce their supply chains.

Situated near the Taoyuan International Airport, which manages the bulk of the region's cargo traffic, this centre links directly to the global UPS network via 22 flights each week.