Bridgestone's sale of the factory is mainly related to the adjustment of production layout. After the original factory ceased production, it released land and factory buildings and looked for a more cost-effective production base. (Picture/newspaper photo)
On the last trading day of the third quarter, another tens of billions of yuan transaction occurred in the commercial real estate market. IC substrate leader Xinxing Electronics spent 10.08888 billion yuan to buy Taiwan Bridgestone's factory in Hukou Township, Hsinchu County. This not only became another heavyweight land transaction in Hsinchu's technology industry cluster this year, but also made the commercial real estate transaction amount in the third quarter officially exceed 100 billion yuan, setting a new record for a single quarter in history.
Xinxing Electronics announced on the 30th that it acquired Bridgestone's Hukou factory through public bidding. The subject land area is approximately 19,072 square meters, the building area is approximately 17,601 square meters, and the total land and factory buildings exceed 36,000 square meters. Tian Yangming, general manager of Puhua International Real Estate who was in charge of the auction, reported that when the two parties signed the contract, the buyer said: "Taiwan's industry needs this land, and the future of the world needs this land." As the demand for AI servers, switches and data centers continues to increase, the technology industry's demand for large industrial bases continues to heat up.
Tian Yangming said that tens of billions of transactions occurred on the last trading day of the third quarter, pushing the single-quarter commercial real estate transaction value to exceed the 100 billion yuan mark and setting a new record for a single quarter in history. The annual transaction value has the opportunity to challenge the new record of 315 billion yuan.
Tian Yangming pointed out that the third and fourth quarters are usually the peak seasons for commercial real estate transactions. This year, the AI industry continues to drive demand for factories and industrial land, and the market's attention to "AI land" has also increased. Bridgestone's Hukou plant was auctioned this time. After the announcement in September, a total of 10 bids were released. In the end, Xinxing Electronics won the bid, and the transaction price exceeded 10 billion yuan.
He said that Bridgestone’s sale of the factory is mainly related to the adjustment of production layout. After the original factory ceased production, it released land and factory buildings and looked for a more cost-effective production base. For the market, traditional manufacturing plants were re-released after industrial transformation, which also provided new use opportunities for large-scale industrial land.
From the perspective of buyer demand, Xinxing Electronics itself has been deployed in Hsinchu, and its Guangfu factory is also an important production base. As the demand for AI servers, switches and data centers increases, ABF carrier board production capacity continues to expand, and the demand for land and factory buildings also increases simultaneously.
Tian Yangming pointed out that Xinxing Electronics’ acquisition of the Hukou factory is not only in response to existing production capacity needs, but also related to next-generation technology development and production capacity layout. This base can be planned to build four factories, with a base of approximately 20,000 square meters and a construction area of approximately 40,000 square meters.
He believes that Hsinchu and Taoyuan are still the areas that are currently attracting attention in the industrial land market, mainly benefiting from the Bamboo Branch, Hsinchu Industrial Park and Taoyuan Industrial Cluster, coupled with complete land, sea and air transportation conditions, they are attractive to the technology manufacturing industry to expand production capacity.
Tian Yangming also mentioned that this year’s commercial real estate market, in addition to factory and industrial land transactions being driven by the AI industry, Taipei’s large commercial real estate transactions are also affected by the demand of the AI industry. Taking Runtai's related targets as an example, after the market has been looking for buyers for a period of time, assets with large AI enterprise tenants are still attracting market attention.
In addition, before the end of this year, Puhua International Real Estate has about four online auction cases in Tainan, Chiayi, Taoyuan and other places, with a total land area of about 45,000 square meters. The subsequent transactions are worth observing.
