Nowadays, the trend of maximizing the liquid crystal display panels makes the display firms and the upper suppliers hold the passive and disadvantaged position in Taiwan TFT-LCD industry, and cannot but push them follow Korea¡¦s strategies to set up new plants and promote the yield continuously. However, setting up a new plant indeed costs a lot, thus, how to reduce the total cost of the supply chain becomes an urgent key point in TFT-LCD industry. Therefore, the co-operative relationship between the upper key component firms and the middle panel firms, the complementary and complete extend of the materials, equipment and the key components can be highly home-manufactured or not, becomes the most important subjects. For this reason, how to help Taiwan¡¦s TFT-LCD industry acquire the active and predominant position is worth studying. The major TFT-LCD suppliers of technology and equipment in Taiwan still have to depend on Japan. Thus, this research intends to focuses on the large-size TFT-LCD firms and analyzes the present situation with the following three dimensions: 1. Can Taiwanese firms gain the active and dominant position with continuously building up plants and complete localized supply chain in TFT-LCD industry? 2. Discuss the level of completeness between the TFT-LCD panel firms and the upper key components firms with equipment and materials to survey that TFT-LCD industry is self-contained or not in Taiwan. 3. How to speed up the whole supply chain of TFT-LCD industry and makes it come into being. Eventually, this research results in three findings of TFT-LCD industry: 1.Crystal cycles happen repeatedly, and it not only fluctuates obviously but shorten the circular interval as well. 2. The technologies of TFT-LCD alternate rapidly. 3. The supply chain of Taiwanese TFT-LCD industry is not self-contained enough. In addition, the integrated and localized ability is over-slack. In conclusion, I take one foreign and one domestic industry-upgraded cases for examples, and try to figure out the constructive and positive guiding principle for the TFT-LCD industry and the following studies in the future. Key words: TFT-LCD, key components, supply chain.