Failure analysis method includes performing fixed radiation of semiconductor chip (wafer) by photocurrent generation laser beam, scanning and radiating a region to be observed on semiconductor chip by heating laser beam, detecting, by a SQUID fluxmeter, current change generated in the semiconductor chip by radiating the photocurrent generation laser beam and the heating laser beam, and analyzing failure of the semiconductor chip based on current change detected by the SQUID fluxmeter. Radiation of photocurrent generation laser beam and heating laser beam are performed from a back surface side of the LSI chip, and detection by the SQUID fluxmeter is performed on a front surface side of the LSI chip. In analysis of failure of the LSI chip, image processing is performed in which a signal outputted from the SQUID fluxmeter is made to correspond to a scanning point. Visualization of defects is possible.