Abstract The development of MEMS industry had been around 27 years, but it grows dramatically in recent years. The developed country, USA, Japan, German, have first mover advantage in MEMS; the economic of Taiwan is less mature than those countries, lack of lot resources also. The positioning and strategy of Taiwan MEMS become more important. MEMS do not only apply electrical but also mechanical character for sensing or manipulating sound, heat, force, magnetism, light, etc to construct sensor and actuator that can react with environment. By using MEMS, we can build up more friendly user interface to conduct more application than IC. Semiconductor chip is so thin and small to derive low transportation cost and low geometry boundary of competition. The cluster effect of Taiwan semiconductor IC industry is so famous to consider MEMS to become important choice for another future Silicon industry due to MEMS can use IC FAB and the talent of engineer and management. We can acquire more Taiwan competence by taking good position in MEMS through extending IC cluster effect and proper positioning and strategy. This paper wants to understand the trajectory and competence of USA, Japan, German through analysis with five forces, diamond model. Apply SWOT to find out positioning of Taiwan MEMS in the future 10 years; then propose the possible way to quickly, firmly develop Taiwan MEMS industry by apply diamond model, management route, dynamic strategy. Keyword: MEMS, MEMS industry, industry development, SWOT, diamond model, industry structure