Nvidia’s plan to build its Taiwan headquarters in Taipei has hit fresh uncertainty after the city government rejected a proposed land transfer arrangement, citing concerns it could improperly benefit private interests.

In May, Nvidia CEO Jensen Huang unveiled the “Constellation” project, announcing the company would establish a major overseas headquarters at the Beitou-Shilin Technology Park. The decision capped years of searching for larger premises, as Nvidia’s Taiwan engineering teams had outgrown existing offices. The announcement was hailed as a milestone for Taiwan’s AI ecosystem, reinforcing the island’s role as a hub for semiconductor and computing supply chains.

The project centered on the T17 and T18 plots of the park, where Shin Kong Life Insurance holds the surface rights. Nvidia and Shin Kong signed a memorandum of understanding (MOU) last year, but it expired at the end of September. Both parties reportedly favored a direct transfer of the rights from Shin Kong to Nvidia, with Nvidia offering compensation. Taipei officials, however, refused, warning that such a deal could breach regulations and appear to enrich a private developer.

Taipei Mayor Chiang Wan-an (蔣萬安) said the city would only allow the project to proceed under two legal options: Shin Kong must either complete construction of the office complex before transferring it to Nvidia, or cancel its contract and return the land so Taipei can reassign the rights directly. He stressed any assistance would strictly follow legal procedures.