This paper deals with the essential features of corporation competence, Structural Equation Model (for SEM) and Grey System, and analyzes the feasibility of evaluating corporation competence by combining SEM with Grey System. From the need of research approach and research objective, this paper refers to present correlated research findings and statistics from 350 listed companies of manufacturing companies in 2005 annual report, and one inchoative model and three comparative models ( that is, M2, M3, M4) are built to evaluate corporation competence, SEM is applied to conduct confirmatory factor analysis (for CFA). A desirable model is determined by analyzing and comparing the parameter estimates and fit index in four models built, and Grey System is adopted to evaluate corporation competence of listed companies.