To provide a semiconductor device that includes an oxide semiconductor and is miniaturized while keeping good electrical properties. In the semiconductor device, an oxide semiconductor layer filling a groove is surrounded by insulating layers including an aluminum oxide film containing excess oxygen. Excess oxygen contained in the aluminum oxide film is supplied to the oxide semiconductor layer, in which a channel is formed, by heat treatment in a manufacturing process of the semiconductor device. Moreover, the aluminum oxide film forms a barrier against oxygen and hydrogen, which inhibits the removal of oxygen from the oxide semiconductor layer surrounded by the insulating layers including an aluminum oxide film and the entry of impurities such as hydrogen in the oxide semiconductor layer. Thus, a highly purified intrinsic oxide semiconductor layer can be obtained. The threshold voltage is controlled effectively by gate electrode layers formed over and under the oxide semiconductor layer.