Internet and e-business strategy enables a firm to integrate with customers, suppliers and partners like an integrated firm. Facing the driving force of e-business, firms ought to adapt business strategy and take electronic integration strategy. This paper uses strategic management and transaction costs perspective to study the effects of uncertainty, technology system, business strategy and experience on e-business integration strategy. This research selects Taiwanese semiconductor and information firms to conduct case study. This paper finds that the information intensity, e-business experiences, integration intentions and strategy types have significant influence on electronic integration. And the effects of demand uncertainty, technology complexity and business scope on electronic integration are partially supported.