This paper points out, relying on digital transformation, the position of division of labor in the value chain can be improved, which may change the previous adverse impact of“low-end embedding”on the total factor productivity of the manufacturing industry into a favorable one, and with the improvement of the participation in the global value chain, it also has a positive effect on the improvement of the total factor productivity of the manufacturing industry. Based on the scientific measurement of the degree of digital transformation and other indicators at the level of manufacturing enterprises, this paper further uses the data of international input-output table to empirically test the realistic effect of digital transformation on the total factor productivity of manufacturing enterprises. The results confirm the above-mentioned theoretical judgment, that is, digital transformation can improve the division of labor in global value chain and enhance the participation in global value chain. It has a positive impact on the increase of TFP in manufacturing enterprises. Therefore, this paper suggests that manufacturing enterprises should seize the important strategic opportunities brought by digital technology, improve the division of labor in global value chains and strengthen the ability to take root in global value chains by vigorously promoting digital transformation, so as to give full play to the positive role of integration into global value chains in enhancing TFP.