The current developments and the prospects in Taiwan's xxxx industry and its policies.
I take that this is a title of a paper or thesis. If so, it is better to place "The current developments and the prospects" in the front. After all, this paper or thesis talks about the developments and prospects. Also you need to add an article "the". I place "the" in front of both "current developments" and "prospects" to make it as TWO different issues, not a COMBINED issue.
I replace "status" with "current", because your Chinese translation is 現況, so I think "current" is better than "status". After all, your talking about the development in this paper or thesis is for the current state and still developing. "status" is just for a window of time in development. However, if it is really only for "a window of time in development", then we shall go back to use "status" as
The development status and the prospects in Taiwan's xxxx industry and its policies.