After the patterning and probe process of wafer have been achieved, the dicing process is necessary to separate chips from a wafer. The dicing process cuts a wafer to lengthwise and crosswise direction to make many chips by using narrow circular rotating diamond blade. But inferior goods are made under the influence of complex dicing environment such as blade, wafer, cutting water and cutting conditions. This paper describes a monitoring algorithm using feature extraction in order to find out an instant of vibration signal change when bad dicing appears. The algorithm is composed of two steps: feature extraction and decision. In the feature extraction, two features processed from vibration signal which is acquired by accelerometer attached on blade head are proposed. In the decision. a threshold method is adopted to classify the dicing process into normal and abnormal dicing. Experiment have been performed for GaAs semiconductor wafer. Based upon observation of the experimental results, the proposed scheme shown a good accuracy of classification performance by which the inferior goods decreased from 35.2% to 12.8%.