The semiconductor industry is one easily influenced by the economic fluctuations, and characterized by high entry barriers as a result of intensive capital and technological requirements. After years of development, the semiconductor industry of Taiwan has become the dominant component of Taiwan's high-tech industry. It has grown into a vertically divided yet mature network of suppliers and manufacturers, equipping the industry with a competitive advantage internationally. As of 2008, Taiwan's semiconductor industry has reached NT$1.409 trillion, accounting for 16% of the global semiconductor production value. The samples of this research were selected from the listed semiconductor companies in Taiwan between 2002 and 2007. The Price to Book Value (PB Ratio) was incorporated as the dependent variable in a Multiple Regression Analysis (MRA) model to evaluate the changes in firm value. Other independent variables include company size, financial structure, management, stage of life cycle of the product, and other attributes of the industry value chain to examine their correlations with firm value. The purpose of this study is to allow companies to better determine the most suitable position in the vertical network and to increase its added-values, thereby enhancing the overall corporate profitability and attaining crucial competitive advantages for the future. The results of this research are as follows: (1) There is a correlation between the attribute of industry value chain and the firm value; the companies involved with IC design of the semiconductor industry has higher firm value compared to those involved with manufacturing, packaging, and testing. (2) The stage of the product life cycle is correlated with the firm value. For companies involved in IC design, the stock market evaluates growing companies with higher PB ratio than the mature companies of IC design with steady growth. However, for those companies involved with manufacturing, packaging, and testing, the market evaluates mature companies with higher PB ratio than growing companies, because of economies of scale and the capital and labor-intensive required for these down-stream production activities.