A semiconductor wafer is prepared. The wafer has a first and a second surface opposite to each other, and has a recess portion and a rim portion. The semiconductor wafer has semiconductor elements formed on the first surface. The rim portion surrounds the recess portion. The recess portion and the rim portion are composed of the first and second surfaces. The recess portion is formed so as to recede toward the first surface. A tape is adhered to the second surface of the semiconductor wafer. At least the recess portion of the semiconductor wafer is placed on a stage. The tape is sandwiched between the recess portion and the stage. Laser beam is irradiated to the recess portion from the side of the first surface and along predetermined dicing lines. The recess portion is cut off to divide the semiconductor wafer into chips.