An object is to provide a reliability-improved semiconductor device having a MONOS memory that rewrites data by injecting carriers into a charge storage portion. When a memory gate electrode having a small gate length is formed in order to overlap a carrier injection position in write operation with that in erase operation, each into an ONO film including a charge storage portion, the ONO film is formed in a recess of a main surface of a semiconductor substrate for securing a large channel length. In a step of manufacturing this structure, control gate electrodes are formed by stepwise processing of a polysilicon film by first and second etching and then, the recess is formed in the main surface of the semiconductor substrate on one side of the control gate electrode by second etching.