This study used the Data Envelopment Analysis to measure semiconductor manufacturing industry's technological efficiency, scale efficiency in Taiwan, and estimated productivity change by Malmquist index over the period 2000 to 2009. Otherwise, we discuss that relationship between R&D activities and efficiency, profitability. This results show that 23% input resource have wasted in semiconductor manufacturing industry, implying that the firms must to improve their efficiency. Results show that R&D activities not impact firms' efficiency and profitability; therefore, while firms can not be attributed to utilization of R&D capital, on the contrary, there would to decrease firms' efficiency and profitability.