An development environment of a high security level is provided for a key-installed system. Development of a program for a system having an LSI device which includes a secure memory is performed by providing another LSI device having the same structure and setting the provided LSI device to a development mode which is different from a product operation mode. Alternatively, the provided LSI device is set to an administrator mode to perform development and encryption of a key-generation program. The LSI device is set to a key-generation mode to execute the encrypted key-generation program, thereby generating various keys.