A semiconductor device is fabricated by a method including the following steps: a first step of forming a semiconductor film containing a metal oxide over an insulating layer; a second step of forming a conductive film over the semiconductor film; a third step of forming a first resist mask over the conductive film and etching the conductive film to form a first conductive layer and to expose a top surface of the semiconductor film that is not covered with the first conductive layer; and a fourth step of forming a second resist mask that covers a top surface and a side surface of the first conductive layer and part of the top surface of the semiconductor film and etching the semiconductor film to form a semiconductor layer and to expose a top surface of the insulating layer that is not covered with the semiconductor layer.