A method of manufacturing a semiconductor device includes steps of forming a semiconductor device layer on an upper surface of a substrate including the upper surface, a lower surface and a dislocation concentrated region arranged so as to part a first side closer to the upper surface and a second side closer to the lower surface, exposing a portion where the dislocation concentrated region does not exist above on the lower surface by removing the substrate on the second side along with at least a part of the dislocation concentrated region, and forming an electrode on the portion.