TAIPEI (Taiwan News) — Deputy Mayor Lee Shu-chuan (李四川) on Wednesday said that Shin Kong Life Insurance is asking for NT$200 million (US$6.47 million) in “reasonable” termination fees for two parcels of land in Taipei that Nvidia has selected for its Taiwan headquarters.

Taipei Mayor Chiang Wan-an (蔣萬安) had led a city council session to report on securing land for Nvidia’s overseas headquarters, per CNA. KMT Taipei City Councilor Tseng Hsien-ying (曾獻瑩) asked who would bear the termination fee for the T17 and T18 sites in the Beitou-Shilin Technology Park.

Chiang replied the cost would be covered by Nvidia through a rights fee, and taxpayers would not be liable. Taipei Department of Land Administration Director Wang Rui-yun (王瑞雲) added that Nvidia has agreed to cover any additional costs beyond what Shin Kong Life has already paid to the city.

After the session, Lee said the city had received documentation from Shin Kong Life showing a total termination fee of about NT$4.47 billion. Deducting the NT$3.44 billion already paid, the difference is roughly NT$1.04 billion.

This exceeds the city’s original estimate of just over NT$800 million. Lee said the discrepancy is mainly due to Shin Kong Life’s payment of about NT$100 million in taxes to the central government and differing calculations of financing costs between the two parties.

He said, “These costs appear legitimate and are reasonable.” Both sides will have accountants review the figures, and the goal is to finalize the amount and sign the termination agreement on Friday. 

After city council approval, the payment will be made, the land rights will be canceled, and urban planning changes, along with Nvidia’s investment proposal review, will proceed.