Taiwan’s traditional manufacturing has great impact for the economic take-off, and is an important force for stabilizing the domestic social economy and livelihood. However, with the rapid development of liberalization and globalization, high-tech industries have emerging and replaced it. With recent domestic and international economic situations such as the US-China trade war, the low-price competition from emerging countries and the continued spread of the COVID-19 epidemic have made the traditional export-oriented manufacturing industry face more severe challenges. On the other hand, Taiwan’s traditional manufacturing industry uses industrial clusters as the main operating mode, but emerging technology has brought disruptive innovations. So, many businesses look to develop new business models based on data. Due to cluster mode, this has driven many cross-industry and cross-field innovation ecosystems in Taiwan traditional manufacturing market and cascading to global industrial chains. The objective of this paper is to find out the paths for the digital transformation of Taiwan’s traditional manufacturing industry. This study will use Jacobides, Cennamo, and Gawer’s "Towards a theory of ecosystems" as the analysis framework to investigate the specific innovation or new value proposition of traditional manufacturers in Taiwan, as well as identify possible complementary support group relations and proposed a transition mode and from concept to enterprise management implications practice.