It is an object of the present invention to provide a method for manufacturing a semiconductor device, capable of keeping a peeling layer from being peeled from a substrate in the phase before the completion of a semiconductor element and peeling a semiconductor element rapidly. It is considered that a peeling layer tends to be peeled from a substrate because the stress is applied to a peeling layer due to the difference in thermal expansion coefficient between a substrate and a peeling layer, or because the volume of a peeling layer is reduced and thus the stress is applied thereto by crystallization of the peeling layer due to heat treatment. Therefore, according to one feature of the invention, the adhesion of a substrate and a peeling layer is enhanced by forming an insulating film (buffer film) for relieving the stress on the peeling layer between the substrate and the peeling layer before forming the peeling layer over the substrate.