
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
A definitive Handbook for Securities exchange Money management - 2
'War is not over': Detailed diagrams of prisons found in cells of Oct. 7 terrorists - 3
Agios Pharma shares jump as US FDA expands approval for its blood disorder drug - 4
Dolly Parton misses Dollywood event due to 'a few health challenges' after skipping honorary Oscars - 5
$2,000 tariff rebate checks? 50-year mortgages? Making sense of Trump's new 'affordability' proposals.
Hitler's madcap mega-railway would have linked Berlin with India
Moderna to complete US mRNA manufacturing network with $140 million investment
It's been 20 years since MTV's golden couple split. These producers saw it all unravel.
I visited the largest collection of public telescopes in the US in Oregon's high desert, and the dark skies blew me away
The Force of Organic product: 10 Assortments That Improve Your Wellbeing
False fuel prices in fabricated graphics circulate in Malaysia as Iran war continues
NASA's Perseverance Mars rover could break the record for miles driven on another planet
Christmas 2025 skywatching guide: What you can see in the night sky on Dec. 25
ChatGPT served as "suicide coach" in man's death, lawsuit alleges













