UPS Opens $100M Automated Taiwan Center Doubling Capacity with 40% Faster Processing
UPS unveiled an $100 million, 872,000-square-foot automated Taoyuan International Logistics Center in Taiwan that more than doubles its warehouse footprint and provides 22 weekly freighter connections. Equipped with autonomous robots, the facility processes orders 40% faster, enables double stacking capacity and reduces picking errors to near zero.
1. Facility Investment and Expansion
UPS invested nearly $100 million to build the 872,000-square-foot Taoyuan International Logistics Center in Taiwan, more than doubling its local warehouse footprint. The site is located three miles from Taoyuan International Airport and connects to 22 weekly freighter flights for global distribution.
2. Advanced Automation Technology
The facility integrates a fleet of autonomous mobile robots programmed for pick-and-pack and inventory management tasks, delivering a 40% increase in processing speed and allowing customers to double stacking capacity. Order-picking errors have been reduced to near zero, improving service reliability.
3. Strategic Sector Support
The Taoyuan center is designed to support high-value B2B sectors such as semiconductors and medical technology. Major customers like Applied Materials now use the center as their continental distribution hub in Asia, reflecting UPS’s push into premium logistics markets.
4. Capex and Network Strategy
This project is part of UPS’s broader Asia Pacific network expansion, which included a new package center in Penang and hub enlargement at Penang Airport in October. While capex is projected to decline from $3.9 billion in 2024 to $3.0 billion in 2026, targeted investments continue in high-margin infrastructure.