Abstract Since the end-product manufacturers in Taiwan cluster, system manufacturers have close relationship with components suppliers. As a result, IC design companies own very good opportunities. In fact, the development of digital IC design industry in Taiwan is very successful, but power management IC design industry is far behind. This study adopted industry analysis to analyze industry status, product differentiation, the advantages and disadvantages of fabless, technical capacity constraints, human resources management, finance and other factors. And this study used those data to infer the strategy of breakthrough and a dramatic growth in analog IC design industry.