A semiconductor device including an oxide semiconductor with stable electric characteristics and high reliability is provided. An island-shaped oxide semiconductor layer is formed by using a resist mask, the resist mask is removed, oxygen is introduced (added) to the oxide semiconductor layer, and heat treatment is performed. The removal of the resist mask, introduction of the oxygen, and heat treatment are performed successively without exposure to the air. Through the oxygen introduction and heat treatment, impurities such as hydrogen, moisture, a hydroxyl group, or hydride are intentionally removed from the oxide semiconductor layer, whereby the oxide semiconductor layer is highly purified. Chlorine may be introduced to an insulating layer over which the oxide semiconductor layer is formed before formation of the oxide semiconductor layer. By introducing chlorine, hydrogen in the insulating layer can be fixed, thereby preventing diffusion of hydrogen from the insulating layer into the oxide semiconductor layer.