
United Parcel Service on Wednesday unveiled its largest and most advanced logistics center in Asia Pacific, a nearly $100 million investment that demonstrates the company’s continued investment in critical infrastructure even as it downsizes its shipping network and reduces overall capital expenditures.
The 872,000-square foot automated distribution center in Taiwan more than doubles UPS’s warehouse footprint in Taiwan. It is located three miles from Taoyuan International Airport, where shipments can reach global markets via 22 freighter flights UPS operates in and out of Taipei each week.
UPS said the Taoyuan International Logistics Center will support high-value sectors such as semiconductors and medical technology. UPS has increasingly placed a strategic focus on B2B logistics sectors with high margins, including healthcare and technology, and international package service. Applied Materials, a major semiconductor and display equipment company, uses the TILC as its Asia continental distribution center.
The building features a fleet of autonomous mobile robots, which are programmed to carry out tasks such as pick and pack, and inventory management. The robots are leading to significant productivity gains, according to UPS. For example, once a customer order arrives at the TILC, it can be processed and packed onto shelves roughly 40% faster than current processing speeds. Customers can also double the number of products they can stack in the equivalent space on regular shelving. Meanwhile, errors made during the order picking process are reduced to near zero.
The Taiwan logistics center is the latest in a series of investments by UPS in its Asia Pacific network to facilitate efficient cross-border trade. In October, UPS opened a 20,000 square foot package center in Penang, Malaysia, and increased the size of its existing hub at Penang Airport to boost parcel processing capacity.
UPS has reduced spending for capital expenditures from $3.9 billion in 2024 to a projected $3 billion in 2026.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at [email protected].
RELATED STORIES:
UPS identifies 22 package facilities for closure
UPS navigates Amazon draw down in hard pivot to premium services
The post New UPS distribution center in Taiwan doubles capacity, productivity appeared first on FreightWaves.
LATEST POSTS
- 1
NASA's Perseverance Mars rover could break the record for miles driven on another planet - 2
Chevron Says Damage at Wheatstone LNG Will Hamper Restart - 3
Climate change is straining Alaska's Arctic. A new mining road may push the region past the brink - 4
Higher cost, worse coverage: Affordable Care Act enrollees say expiring subsidies will hit them hard - 5
This Is Canada's Only Province Without Any Bears
The Oscars are moving from ABC to YouTube starting in 2029
'Wuthering Heights' trailer features Margot Robbie and Jacob Elordi in a steamy forbidden romance
Pick Your #1 game to observe
The Drone Video of the Year is stunning – you've not seen Namibia like this
Dominating Online Entertainment Showcasing: 7 Hints for Organizations
One third of Spanish pork export certificates blocked since swine fever outbreak, minister says
The Solution to Defeating Tarrying: Systems for Expanded Efficiency
The Best Computer games for Multiplayer Fun
The Significance of Prenuptial Arrangements in Separation Procedures










