UPS opens tech-enabled logistics centre in Taiwan for APAC growth

UPS has unveiled its largest and most advanced logistics centre in Asia Pacific, the Taoyuan International Logistics Center (TILC), aimed at improving customer productivity, efficiency and supply chain resilience.

Located in Taoyuan, Taiwan, the facility spans more than 81,000 square metres and more than doubles UPS’s warehouse footprint in the market. The centre is designed to help customers operate more efficiently and connect seamlessly to UPS’s global network.

The TILC is equipped with advanced automation technology, value-added capabilities, and modern storage and warehouse management systems to support a wide range of industries. It is situated five kilometres from Taoyuan International Airport, enabling fast connectivity through the 22 UPS flights operating weekly to and from the airport.

Lauren Zhao, president of UPS Asia Pacific Supply Chain Solutions and Freight Forwarding, said businesses across the region are seeking to strengthen their supply chains, with Taiwan playing a key role, particularly in semiconductor manufacturing and high-value sectors such as medical technology. She added that the new facility is designed to meet evolving customer needs by improving productivity, efficiency and flexibility.

Applied Materials is using the facility as its Asia continental distribution centre. Erix Yu, Group Vice President and President of Applied Materials Taiwan, said the centre supports the company’s regional growth by providing a scalable and flexible logistics foundation as demand for semiconductors rises.

UPS has invested nearly $100 million in the facility. It features autonomous mobile robots (AMRs) that carry out tasks such as picking, packing and inventory management. These systems enable faster processing, with customer orders being handled around 40 per cent quicker than before, while also improving storage capacity and reducing errors in order picking to near zero.

According to Zhao, the use of automation can significantly enhance productivity and customer experience by enabling faster response to customer orders.

The launch is part of UPS’s ongoing investments in its Asia Pacific network to support cross-border trade and strengthen its global logistics capabilities. The company offers a full range of end-to-end logistics and supply chain solutions in Taiwan, with delivery services to more than 200 countries and territories, in some cases within one business day.