This article intends to clarify the mechanisms through which institutional modifications happen, and demonstrates how incorporating the Structuration theory envisaged by Anthony Giddens into North's analytical structure of institutional economics, we can make some modifications to the mechanism of institutional change. In addition, this article also supports the notion that markets and hierarchies are suitable for different regimes of return. This also indicates that these is no continuum between markets and hierarchies, as they are totally separate concepts. In addition, this article, via historical analysis, documents the development history of Taiwan's semiconductor industry. We not only elucidate how these actors interact with institutions to reach the path change, but also intend to respond to what North calls for by using the historical method for analyzing institutional change.