An object of the invention is to reduce the power consumption of a semiconductor device that requires a plurality of reference potentials and a method of driving the semiconductor device. Disclosed is a semiconductor device having a potential divider circuit in which a potential supplied to a power supply line is resistively divided by resistors connected in series to the power supply line so that a desired potential is output through a switch transistor electrically connected to the power supply line. A drain terminal of the switch transistor is electrically connected to a gate terminal of a transistor provided in a circuit on the output side (or to one terminal of a capacitor) to form a node. The switch transistor has an off current low enough to hold the desired voltage in the node even when the potential is no more supplied to the power supply line.