By constructing industry-level digital economy penetration indicators, this paper uses multinational industry data of 40 countries and 15 industries from 2007 to 2021 to explore the relationship between digital economy penetration and the evolution of the status of manufacturing global value chain. Research shows that the penetration of the digital economy has a signifi cant role in promoting the height and depth of a country’s manufacturing global value chain. For developed countries, the digital economy penetration has a greater role in promoting the rise of the manufacturing global value chain. For developing countries, the digital economy penetration is more conducive to deepening their participation in the global value chain. When analyzing diff erent factor-intensive industries, it is found that the digital economy penetration has the strongest eff ect on the height and depth of capital-intensive manufacturing global value chain. In addition, the digital economy penetration from abroad has a greater positive eff ect on the global value chain of the manufacturing industry than at home. Further research on the impact path shows that the digital economy penetration drives a country to deeply participate in the global value chain and climb to the high end by promoting the realization of industrial intelligence, service and greening in the manufacturing industry.