Abstract:Guangdong traditional industry small and medium enterprises (SEMs)are in an important period of transformation and upgrading. In the Taiwan industrial transformation and upgrading process, Taiwan made traditional manufacturing industry into tourism factory,extended and expanded the value space of traditional industries, reshaped traditional manufacturing industry competitiveness, provided support for promoting the industrial structure adjustment and upgrading of the manufacturing industry in Taiwan. The paper based on the analysis of Taiwan “ tourism factory”status and characteristics,combing the practice and cultivation mode, suggested that Guangdong Traditional SMEs should improve strategy transformation awareness of manufacturing servitization,introduce and improve the supporting policies and measures,promote innovation and development of SMEs,propel innovation and upgrading of industrial links,etc.