This study focuses on the determinants of agglomerations, natural advantages, spillovers, and transaction costs respectively, and intends to form a location choice model with those agglomerative factors. Besides, we examine the geographic concentration scope overall and by region with the data set of manufacturing industries in Taiwan in 2003. We also explore some interesting empirical results. First, the overall geographic concentration level is slightly decreasing through 1996 to 2003. Second, the plants in the South and Middle regions of Taiwan are more concentrated than those in the North region. And each region has its own specific characteristic that draws different types of industries to locate. Third, with OLS regression we find that outsourcing dependence variable applied to proximate transaction costs effect is the most significant of all and represents that transaction costs have large influence to agglomeration scope. Finally this model can be improved from some aspects of involving distance into consideration and extending to entrepreneur across countries.