A first display element includes a first pixel electrode that reflects visible light, a liquid crystal layer, and a first common electrode that transmits visible light. A second display element includes a second pixel electrode that transmits visible light, a light-emitting layer, and a second common electrode that reflects visible light. A separation layer that reflects visible light is formed over a formation substrate, an insulating layer is formed over the separation layer, and the second display element is formed over the insulating layer. The formation substrate and a second substrate are bonded to each other. Then, the formation substrate and the separation layer are separated from each other. The exposed separation layer is processed into the first pixel electrode. The liquid crystal layer is positioned between the first common electrode and the first pixel electrode and a first substrate and the second substrate are bonded to each other.