When single crystal semiconductor layers are transposed from a single crystal semiconductor substrate (a bond wafer), the single crystal semiconductor substrate is etched selectively (this step is also referred to as groove processing), and a plurality of single crystal semiconductor layers, which are being divided in size of manufactured semiconductor elements, are transposed to a different substrate (a base substrate). Thus, a plurality of island-shaped single crystal semiconductor layers (SOI layers) can be formed over the base substrate. Further, etching is performed on the single crystal semiconductor layers formed over the base substrate, and the shapes of the SOI layers are controlled precisely by being processed and modified.