Under global competition, some Taiwan corporations started to implement international strategy. Most of the corporations go foreign investment in South-East Asia and Mainland China. But some of the corporations do not afford the expected profit from the international strategy because they are not familiar with international business. In the international business area, multinational corporation (MNC) subsidiary knowledge flow is an important factor to influence the role of the subsidiary and the success of international strategy. The procedures of this study are mainly through the review on the relevant reference documents and the interview of PHILIPS Semiconductor Kaohsiung managers. The main purposes of this study are to establish an appropriate MNC subsidiary knowledge flow model to find out what factors will influence subsidiary knowledge flow, and to make a recommendation both for headquarter and subsidiary managers as their reference when they plan to implement knowledge transfer strategy.