Human beings always keep seeking for a better life ,our civilization also keeps moving forward grounded on this momentum .Each economic booming implies a new application or technology developed. Liquid crystal was found by a Austrian scientist, F.REINITZER in 1968 .Japanese companies applied it into large scale display started in 90s,which urged us moving into LCD era . In this study, we will discuss the competitive advantage of Taiwanese LCD driver IC industry ,the key component of LCD supply chain . Also we will take Taiwanese LCD driver IC design house-Novatek for example . By using five-forces framework , diamond structure and co-opetition theory ,we will dig out Taiwanese LCD driver IC industry¡¦s competitive advantage and its own position among world market . This study found Taiwanese LCD driver IC industry has competitive advantages of industry cluster ,high competition ,world-class customers ,quality human resources and government¡¦s support . With those advantages , Taiwanese LCD driver IC industry plays an important role of world market . We also propose strategies to Taiwanese LCD driver IC industry based on the result of this study .