Through the development of industry technology innovation strategic alliance, Chinese government would like to establish and further collaboration model between industry and academics, assisting the establishment of industry innovation chain and enhancing indogenous-innovation capabilities. Cross-strait collaboration model based on industry alliance can utilize the advantage of a development platform specifically designed for the industry, integrating policies, market trend, and industry link. This research will take current semiconductor lighting industry cross-strait collaboration as an example, analyzing the role of the industry alliance and its effect on implementation of industrial collaboration. Case study shows that industry alliance has its limitation due to industry structure and issues of benefit distribution, despite its positive effects. In addition to current industry alliance as development platform, establishing new industry alliance as cross-strait development platform is one potential option in the future. Corporations can acquire insight and information on new opportunities, industry link, and qualification through the intermediate of this new alliance, making breakthrough in joining the pilot project.