FEM is a powerful tool for predicting cutting process variables, which are difficult to obtain with experimental methods. In this paper modeling techniques on chip formation by using the commercial FEM code ABAQUS are discussed. Because of the limitations of Lagrangian and Eulerian methods, a modeling method based on ALE (Arbitrary Lagrangian Eulerian) technology is proposed to simulate the chip formation process. It consists of three chip formation analysis steps, i.e. initial chip formation, chip growth and steady-state chip formation. With this modeling method, high speed turning process of stainless steel 2Cr13 is simulated. And the predicted variables are compared with experimental data. It has been found that the results are in good agreement with the experimental ones.