Germanium is a typical dispersed element, it is the most important semiconductor material except for silicon. Today, Germanium is used principally in the field of infrared optical, telecommunication fiber optics, a polymerization catalyst for polyethylene terephthalate(PET), a kind of commercially important plastic in solar cell and in biomedicine, and as a semiconductor and substrate in electronics circuitry. Germanium resource is scarce in the earth.  The reserve of germanium in China ranks first in the world. Yunnan Province owns about40percent of germanium reserve of China and owns the basis of research and development in the field of infrared optical, so it is very significant to develop germanium industry in Yunnan. This paper analyzes the exterior and interior circumstances for the industrial development of germanium in Yunnan, brings forward the orientation of development and the total target of Yunnan germanium industry from2006to2020, and discusses the industrial chains of germanium, product position, industrial layout, the supporting system and the key projects.