The soda industry of Taiwan began with the military needs in the late period of Japanese rule. These facilities were almost completely destroyed by bombs during World War II. The Chinese government took over the soda industry in Taiwan and set up the national Soda Industry Company after the War. The products of the soda industry, such as sodium, caustic soda, etc., are used in the manufacture of soap, paper, textile, seasoning and aluminum. After 1949, Taiwan's soda industry lost its main market, Shanghai, and had to make an effort to increase the domestic market. Taiwan's industry began to grow in the 1950's because of the Korean War and American Aid. As a result, the demand for caustic soda increased quickly. The Soda Industry Company in Taiwan began to make a profit. The Company not only acquired technology from developed countries, but expanded equipment. Due to world overproduction of caustic soda in 1964, and because the quality and prices of imported caustic soda were better than the products of the Soda Industry Company in Taiwan, the latter had to change its management direction. This article will make full use of archives to research the transformation of the soda industry in Taiwan. First, it will inquire into the background of the soda industry during the Japanese rule period. Then, after investigating the difficult conditions under which the Chinese government had to take over these factories in 1945, it will analyze the post-war development process of the soda industry, which was an important element of Taiwan's economy.