An object is to provide a display device with high productivity by reducing the number of masks and the number of steps. Another object is to provide a display device with high yield. A pixel transistor and a driver transistor are formed over a substrate having an insulating surface in the same step. A pixel electrode electrically connected to the pixel transistor is one electrode. The other electrode is supplied with a fixed potential. A region where a pair of electrodes overlap with each other is used as a capacitor. Accordingly, the number of masks and steps are reduced to provide a display device with high productivity.