Bio-technology is a key technology for 21st century. The development of bio-technology would change the input-output relation for phalaenopsis production in Taiwan. However, bio-technology per se will not create its own value. Technology management becomes one of the critical factors to create technology value in the production process. By applying ”value chain” theory, which was innovated by Michael Porter, the paper uses q1estionnaires to interview several Taiwanese phalaenopsis farms of differing scales. This paper has constructed the phalaenopsis ”value chain” in Taiwan, and tries to effectively construct the industry value chain for phalaenopsis from the aspects of technology management, so as to improve the competitive advantage for the industry. The findings of this paper are; (1) biotechnology shows positive effects on value added enhancement for phalaenopsis; (2) the value chain curve of Taiwan phalaenopsis shows a smiling shape.