Investing.com -- United Parcel Service opened a new $100 million logistics center in Taiwan on Wednesday, marking its largest facility in the Asia Pacific region.

The site is located in Taoyuan in northern Taiwan, near the island's largest international airport. Applied Materials (NASDAQ: AMAT), the largest U.S. semiconductor equipment maker, will use the facility as an Asian distribution center.

Lauren Zhao, president of UPS Asia Pacific Supply Chain Solutions and Freight Forwarding, said that around 80% of the freight is high-tech. She noted that Taiwan's semiconductor industry is the most advanced in the world, and the manufacturing processes related to the semiconductor industry are also where Taiwan is leading globally.

UPS currently operates only out of Taoyuan airport. Sam Hung, the company's managing director for Japan, South Korea and Taiwan, said UPS is considering flights to Kaohsiung in southern Taiwan, depending on customer demand.

Taiwan is home to TSMC, the world's top contract chip-maker and dominant supplier of the advanced semiconductors powering the boom in AI technologies. Kaohsiung is where TSMC is building a large new factory as part of a developing semiconductor cluster in southern Taiwan.