Taoyuan City
Taiwan's gateway: 90% of AI server shipments, half of Nvidia's suppliers. Aerotropolis attracts 6 key industries. Air freight volume +34.29% Q1 2025. By 2026, Terminal 3 opens; city economy tied to semiconductor logistics.
Taiwan's gateway—Taoyuan International Airport handles 90% of the island's high-end AI server shipments, making the city critical infrastructure for the silicon shield. Half of Nvidia's 43 key suppliers are based here, and DHL expanded into the International Logistics Park in 2024 to serve semiconductor and medical industries. The Aerotropolis development attracted six key industries: aviation support, smart vehicles, international logistics, biotech, renewable energy, and cloud computing.
Geography created this concentration. Proximity to Taipei provides talent access; the airport provides global connectivity; industrial land remains affordable. The Aviation Free Trade Zone (91.68% leasing rate as of 2025) offers value-added services, logistics distribution, and courier operations. Air freight volume surged 34.29% in Q1 2025 YoY; trade value jumped 81.32%.
Terminal 3 opens in 2026, handling 45 million passengers annually. A new 100-hectare air cargo park targets 4.02 million metric tons by 2040. China Airlines initiated Taiwan's first SAF-powered freighter flight in October 2024, cutting emissions 80%.
2026 trajectory: Third terminal completion coincides with continued AI boom. Taoyuan becomes test case for sustainable aviation logistics—SAF adoption, electric ground vehicles, carbon-neutral cargo handling. The city's economy rises or falls with semiconductor air freight.