While chairing a municipal administration meeting on September 15, Taoyuan Mayor Chang San-Cheng announced plans for a 40-hectare high-end integrated circuit (IC) substrate zone on Phase 1 land within the Taoyuan Aerotropolis’s Type III Industrial Zone, responding to rapid growth in the artificial intelligence (AI) industry. Construction and land handovers will proceed in phases to enable manufacturers to establish facilities sooner. The city and manufacturers are expected to begin site preparation together by 2028, adding fresh momentum to Taoyuan’s industrial development.
Mayor Chang noted that Taoyuan was one of the earliest cities worldwide to develop a printed circuit board (PCB) industry. In the past, PCB manufacturing carried a heavier environmental footprint, prompting some companies to move operations overseas. However, technological advances have substantially reduced the environmental impact of high-end IC substrate plants, allowing pollutants to be treated directly within individual facilities or industrial parks—a marked shift from the industry's past. Driven by recent demand from the AI sector, substrate manufacturers have been returning to Taiwan or expanding domestic capacity, an opportunity Taoyuan intends to capture.
Mayor Chang explained that land acquisition for the Aerotropolis is largely complete, with most affected households already relocated. If progress remains smooth, the final phase of relocations and demolitions is expected to conclude by mid-2027. Given the high electricity demand of advanced substrate manufacturing, the city government will provide dedicated support for companies applying to Taiwan Power Company (Taipower) for 161 kV extra-high-voltage power. Nearby substations will meet short-term supply needs, while the city coordinates with Taipower to expedite long-term infrastructure projects, including the Puxin and Guolin substations. To secure a stable supply of water, the city will also integrate multiple sources, including reclaimed water.
Mayor Chang stated that land within the high-end IC substrate zone will generally be offered through the establishment of superficies rights. This structure aims to ease upfront capital pressure on land acquisition, allowing manufacturers to channel more resources into advanced R&D, equipment upgrades, facility construction, and capacity expansion.
Mayor Chang also noted that the Executive Yuan had convened its task force for advancing the Taoyuan Aerotropolis core plan. The Water Resources Agency under the Ministry of Economic Affairs will serve as the lead contact to establish an interministerial coordination mechanism, aligning supplies of tap water, reclaimed water, and desalinated seawater with factory construction schedules. The agency will also accelerate feasibility evaluations for the Bali Sewage Treatment Plant reclaimed water project and the operational timeline for seawater desalination, demonstrating the central government’s support for high-end IC substrate manufacturers setting up in the Aerotropolis.
Mayor Chang emphasized that, amid fierce global competition, both the Longtan Science Park and the Aerotropolis high-end IC substrate zone will adopt a phased approach to construction and land handover. Each completed section will be handed over on a priority basis so manufacturers can build facilities promptly and capitalize on AI industry growth. In October, the city government plans to sign a memorandum of understanding with the Taiwan Printed Circuit Association (TPCA), Unimicron Technology Corporation, Kinsus Interconnect Technology Corp., and other industry partners to progressively deliver on the Aerotropolis industrial development blueprint.