Abstract The more and more IC makers take the Research job in Silicon Valley, development in Taiwan and China, Design for Manufacturing in Taiwan and Marketing in China. There are plenty of complete Supplier Chains with organizing the companys of IC Resign, Foundry, Si-IP, Subcontracted Assembly & Test Service. The capacity offered is almost over 60% worldwide with very high technique and quality level. This is getting more dominantly important to provide turn-key service durin IDM shrinking trend. Meanwhile the great gap in the supply chain is expanding in IC testing design and manufacturing, which is the bottle neck of IC industry in either cost, technical or turn-around time. The research is subjected to get a workable business model of IC testing Design Service working with a right product Segmentation, Targeting, Positioning to compensate the gap. The research takes kinds of reference of Competitive Advantages, Competition Strategies, Co-petition Strategy, Competition, Strategy, and Disruptive Innovation to construct the research model. IC Testing Design is an innovative business model in Taiwan Industry. Conseguently the research collects opinions from high level managers of IC industry. It also does a case study by using the case of BEST-itech, which is the first supplier of IC Testing Service in Taiwan market. We could learn the SWOP to see how to provide the Testing Design Service in right positioning and strategy. The targeting customers are all in the Supply Chain of Virtual IDM, including IDM, Foundry, Design House, Design Service, Test & Assembly, ATE Vendor, FA House etc. During the resession of 2008, much more demand toward Virtual-IDM is firmed. The outsourcing demand of IC testing design is getting clear. ATE vendor¡¦s market scale growth is getting slow as well as the ASP. So the requirement and opportunity of IC Testing Design Service is happening. The research concludes the IC Testing Design is a workable and necessary sub-chain in IC-subcon supply. The Value Network is a good model to tell how to transfer the comptition to be the compensator or customers for all players in the supply chain. The research also concludes 4 segments necessary in the IC Testing Design business model. Those are 1. Tester Opt ionization of Utilization. 2. Device Interface Integrated with Testing Design. 3. Add-on Solution Implement in Testing Tech-Gap. 4. Test Floor Automation and SPC Testing. Hopefully this research could provide a good picture to start the innovative business model to help the IC industry.