MediumV Technology Geopolitics & AI17 September 2026, Thursday
Taiwan is expanding Longtan Science Park by 104 hectares: NT$95.63 billion investment and 4,500 new jobs
Taiwan's National Development Council approved a 104-hectare expansion of Longtan Science Park in Taoyuan on 17 September 2026; when the NT$95.63 billion (2.99 billion dollar) project is complete, an annual output value of NT$550 billion is targeted.
The National Development Council (NDC) approved the plan submitted by the National Science and Technology Council at its review meeting on 17 September 2026. The plan adds 104 hectares of new land on the eastern side of Longtan Science Park, which currently covers 106.94 hectares and employs about 7,000 people. The total cost was given as NT$95.63 billion (2.99 billion dollars), with financing to come from annual budget allocations out of the Science Park Administration's Operating Fund. As NDC Minister Yeh Chun-hsien reported, once complete the companies on the site are expected to produce NT$550 billion worth of goods and services a year and to create about 4,500 well-paid jobs.
The timetable is long: development permits and the environmental impact assessment for the land outside the city are expected to be completed by the end of 2028, while infrastructure design and construction are due to begin in 2030; companies will be able to build their own facilities alongside the infrastructure. The plan now goes to the Executive Yuan for final approval. In May 2026 local media reported that TSMC was seeking government approval to build an advanced-node wafer fab at Longtan after the expansion; the company's investment decision on this site could not be independently verified.
The expansion is intended to reinforce the semiconductor cluster along the Taoyuan-Hsinchu-Miaoli corridor. The same week, the Taoyuan authorities announced that they were planning a separate area of 40 hectares in the first phase for advanced ABF carrier substrate producers in the Aerotropolis special industrial zone near the airport; the aim is thus to extend Longtan's current profile, weighted towards integrated circuits, optoelectronics and biotechnology, towards the advanced packaging chain.
Talay assessment
Bottom line
Taiwan is continuing its strategy of keeping capacity on the island, wagering on the persistence of artificial intelligence demand: public infrastructure spending of NT$95.63 billion, with construction starting in 2030, pushes production into the first half of the 2030s. Nothing changes on the supply side in the near term; the real signal is whether the environmental and land permits that must be completed by the end of 2028 stay on schedule. If there is a delay, part of TSMC's advanced-node capacity could shift to sites abroad.
Likely effects
- Global chip supplyUncertain6 months+
The 104 hectares of new land and the target output of NT$550 billion a year keep advanced-node capacity concentrated in Taiwan; the concentration of geographical risk is not falling.
- Taiwanese labour and energyNegative6 months+
Adding 4,500 people to the existing workforce of 7,000 increases the pressure on electricity and water infrastructure; infrastructure construction does not begin until 2030.
- Türkiye's electronics importsUncertain6 months+
Türkiye's chip and electronics supply remains tied to the Taiwanese cluster; no price relief from the additional capacity should be expected before 2030.
Possibilities, ranked
- 1The timetable holds55%
Executive Yuan approval arrives, the permit processes are completed by the end of 2028 and construction begins in 2030.
Watch: The Executive Yuan's final approval decision and the formal start of the environmental impact assessment
- 2Permit and land delays30%
Land acquisition and environmental objections push the timetable back and the NT$550 billion output target moves to a later date.
Watch: Expropriation cases and a formal revision of the end-2028 permit target
- 3The TSMC investment is confirmed15%
TSMC announces a formal application for an advanced-node fab on the site and the scale of the project grows.
Watch: A formal TSMC investment announcement on the site or an application to the Science Park Administration
Probabilities are calibrated judgement based on the sources, not measurement, and are revised as new information arrives. Not investment advice.
Market reaction
Indicators affected
- Longtan annual output target▲ NT$550 billion
- New jobs▲ 4,500
- Project investment▲ $2.99 billion