This article aims at investigating the characteristics of IT cluster in the Greater Dongguan Area (GDA) by reconstructing the concept of ”local embeddedness”. We argue that the GDA had transformed from an export-oriented enclave to the bridge -head for the Taiwanese IT companies to explore the Mainland's market. The Taiwanese IT production networks are 're-embedding' in the GDA, but local institutions that used to support export now become the bottleneck for the transformation. Finally, this study shows that the concept of ”local embeddedness” we reconstructed could capture the dynamics of interaction between the trans-border production networks and the host regions suitably, and the concept has more analytical potential than that of ”locational advantage” in exploring globalized regional development.