Abstract:During knowledge economy period,the value addition comes mainly from intangible service industry instead of tangible production. Therefore,the service factor of knowledge intensiveness plays a vital role in value addition of value chain key procedure. This is the essential reason of manufacture servitization. This article gives an analysis of value chain occurrences infl uenced by knowledge economy,and how these changes further impact the manufacture benefits,which make it transfer to service industry. Moreover,the environmental factor is also the reason of manufacture servitization.