In the case where an integrated circuit formed of a thin film is formed over a substrate and peeled from the substrate, a fissure (also referred to as crack) is generated in the integrated circuit in some cases. The present invention is to restrain the generation of a fissure by fixing the proceeding direction of etching in one direction to make a peeled layer warp in one direction in accordance with the proceeding of etching. For example, the proceeding of etching can be controlled by utilizing the fact that a portion where a substrate is in contact with a base insulating layer is not etched in the case of patterning a peeling layer provided over the substrate, then forming the base insulating layer, and then fixing a peeled layer by the portion where the substrate is in contact with the base insulating layer.