This paper investigates Taiwan's strategic promotion of the photovoltaic industry, along with the warm welcome it has extended to developments and competitive trends in global green energy technology. Through gaining a grasp of Taiwan's position as fourth globally in the photovoltaic industry and production potential, the author's main concern was with the role of the government, encouraging policies, installation incentive measures, the newest ‘Renewable Energy Development Act’, Science Park cluster effect strategy, initiating National Energy projects and actively promoting and improving the competitiveness of Taiwan's photovoltaic industry. The promotion of legislation and policy-orientated strategies are all a vital path to Taiwan catching up, learning and developing competitiveness in the area of science and technology related industries. Moreover, from the perspective of technological and industrial development trends, the author carried out a SWOT analysis of Taiwan's photovoltaic industry, pointing out that with the basic niche established through Taiwan's semiconductor and IC manufacturing and design, Taiwan's photovoltaic industry has the potential to take it one step further in the areas of R&D and the possibility of acquiring breakthroughs in international cooperation.