A method of irradiating at least a part of a semiconductor film on the substrate with a CW or pseudo-CW laser beam so as to grow crystals laterally. A region over the semiconductor film having Si as a chief component is provided with a pixel region, a gate line driving circuit region and a signal line driving circuit region for driving pixels, and a terminal region where connection terminals will be formed. The region not irradiated with the CW laser beam is provided in a peripheral portion of each semiconductor device corresponding to the position where the glass substrate will be cut. Due to this means, it is possible to suppress occurrence of a failure caused by propagation of cracks when the substrate is cut.