With the gradually increasing importance of digital contents, the government implements the related strategies depending on the conditions of the market and the external environment. The animation industry is still at the preliminary stage and faces international competition. Therefore, considering the development animation industry in Taiwan, it would be powerful to start with analyzing industry policies. This essay begins with the history of animation industry in Taiwan and the development policies of the industry in other countries, while focusing on the Taiwan government’s policies for the animation part of digital content and current situations of the industry. Through interviews and rational analysis model of data collections, the study explored the critical points of the development of animation industry, and found the connections and differences between the policies and effectiveness. Moreover, considering the actual problems encountered by manufactures and the demand side of the environment, the study implied the essential components and the future orientation of the policies.