A silicon carbide substrate having a surface is prepared. An impurity region (123 to 125) is formed by implanting ions from the surface into the silicon carbide substrate. Annealing for activating the impurity region is performed. The annealing includes the step of applying first laser light having a first wavelength to the surface of the silicon carbide substrate, and the step of applying second laser light having a second wavelength to the surface of the silicon carbide substrate. The silicon carbide substrate has first and second extinction coefficients at the first and second wavelengths, respectively. A ratio of the first extinction coefficient to the first wavelength is higher than 5 × 10 5 /m. A ratio of the second extinction coefficient to the second wavelength is lower than 5 x10 5 /m. Consequently, damage to the surface of the silicon carbide substrate during laser annealing can be reduced.