A substrate having an insulating surface is prepared; a stacked film including a first oxide semiconductor layer and a second oxide semiconductor layer is formed over the substrate; a mask layer is formed over part of the stacked film and then dry etching treatment is performed, so that the stacked film is removed, with a region provided with the mask layer remaining, and a reaction product is formed on a side surface of the remaining stacked film; the reaction product is removed by wet etching treatment after removal of the mask layer; a source electrode and a drain electrode are formed over the stacked film; and a third oxide semiconductor layer, a gate insulating film, and a gate electrode are stacked and formed in this order over the stacked film, and the source electrode and the drain electrode.