in a semiconductor memory having memory cells, a groove (17) is formed in a semiconductor substrate (10), and a semiconductor layer (20) is charged into said groove (17) via an insulating film (18) to form a capacitor electrode. The semiconductor layer (20) stretches on the insulating film (11) formed on the semiconductor substrate (10) and comes into contact with the substrate (10) passing through a hole formed in the insulating film (11) thereby to form a base portion of a switching MOS transistor. The source and drain regions (151, 152) of the transistor are formed on said semiconductor layer on the insulating film (11).