The regional industry transplantation happens when the supply chain value must shift to the regions where can be more competitive. US and Japan have transferred the IT manufacturing and product design operations from mainland to Taiwan for almost 20 years, but, US and Japan have been refocusing on their more competitive supply chain positions such as marketing, distribution, key components and materials and still keep their high profit margins after the value chain shift . This research is to study how the transplantation of IT manufacturing from Taiwan to China can impact Taiwan economy and how Taiwan can transform the IT industry from the current supply value chain, manufacturing assembly into more valued-added positioning such as branding, sales, service, key components, materials, etc. Based on the historical data, if Taiwan can move up the supply chain to more basic research and/or change the business model from outsourcing manufacturing to new product design and branding, Taiwan may improve the IT profits margin and directly compete with the current clients such as HP, Dell, Apple, etc. This work is also to study some possibilities and difficulties those Taiwan might encounter when the supply chain value shift happen for both industrial and enterprise because of demanding long term investment and business model change. Introducing new clustering of technologies and industries have also been evaluated and discussed for the replacement of IT industry, but the margins can be deteriorated due to high competition of manufacturing. Unless the new business model is to move up the supply chain. Finally, a migration path to "digital convergence" product positioning is studied and proposed for Taiwan IT industry based on Samsung case study results. To m∞t the next GDP target of 2015, Taiwan must make an aggressive move of the current supply value chain position from manufacturing to the next higher levels with more valued-added even for the new clustering of industries or the new product positioning. Differentiation of product rather than "low cost" should be only business model consideration and chosen competitive strategy for the future.