A heterojunction bipolar transistor having excellent high-frequency characteristics is manufactured by forming a semi-insulating semiconductor layer on a collector (or emitter) layer, removing a part of the semi-insulating semiconductor layer to form a cut portion so that the collector layer is exposed at the cut portion, growing a base layer on the semi-insulating semiconductor layer, on a slant wall of the cut portion and on the exposed part of the collector layer, and growing an emitter (or collector) layer on the base layer. A base layer may be preliminarily formed on the semi-insulating semiconductor layer before forming the cut portion. Energy band gap of the emitter is greater than that of the base.