A novel surface acoustic wave device with a decreased velocity dispersion and a low insertion loss as well as the fabrication method therefor is provided. The surface acoustic wave device includes a substrate, an insulating layer with an indentation on the substrate, a silicon layer with a first portion on the insulating layer and a second portion suspended above the indentation, a piezoelectric layer on the first and the second portions of the silicon layer, and at least an electrode on the piezoelectric layer.