The purpose of this study is based on Data Envelopment Analysis (DEA) concept, and then integrates multi-stage model to construct an efficiency evaluation model for measure the semiconductor industry’s wafer fabrication in Taiwan. The period of this study will focus on the time period at the policy of Taiwan opened investments of the 8 inch wafer to China, 6 years before this policy and 6 years after this policy (1996-2008). Finally, in results of this study, TSMC and AMPI are having high efficiency in wafer fabrication industry. Through this multi-stage DEA can understand the performance, improvement range and aspect of semiconductor industry’s wafer fabrication in Taiwan. Importantly, the proposed model can assist decision makers or administrators of wafer fabrication in assessing the performance, improving applicability for academic and commercial purposes.