As business opportunities in the global medical device industry gradually revive, Taiwan's medical device industry is beginning to reveal development potential given the government's aggressive support and enthusiastic cross-over by other local industries. This article will start with a background analysis of Taiwan's medical device industry, discussing the market value of Taiwan's medical device industry, market needs, import and export situation etc.... This will help us to understand in greater detail the development trends of Taiwan's medical device industry. The article will also go a step further to describe the development process of some of Taiwan's star medical device products. Through an analysis of the industry's added value, we aim to discover just how Taiwan can strategically develop to increase its value in the global medical device industry. To adequately understand the advantages, disadvantages and critical development factors of Taiwan's medical device industry, experts have been consulted and the article will detail some issues that Taiwan's medical device industry is facing, an industry chain and value chain situation analysis will be highlighted so that innovation gaps can be underlined and address some of the key issues currently faced by the industry. Finally, with focus on market opportunities and product development, the article will identify the pending development direction of Taiwan's medical device industry. Hopefully this article will be able to give businesses and our government a better understanding of the industry and enhance our country's overall industrial competitiveness.