The display industry has followed the semiconductor industry in becoming an important high-tech industry in the world. In 2007, Taiwan became the largest large-area Thin Film Transistor Liquid Crystal Display (TFT-LCD) producer within only 30 years. In reality, the development of Taiwanese large-area TFT-LCD industry has been intimately related with the mutual drive and impact of many different factors. System approach uses a holistic conception of the world, defining analytical problems through systematic thinking. This study uses this method to propose a causative relationship model for the Taiwanese large-area TFT-LCD industry to explore its system behaviours. Discussions are presented systematically, based upon the causative model.