A semiconductor device employing a new isolation process is disclosed, wherein an isolation area is a region in which a burying material is buried in a deep groove formed in a semiconductor body with a substantially constant width by anisotropic dry etching, semiconductor elements are formed in selected ones of semiconductor regions isolated by the isolation area, and others of the semiconductor regions, with no semiconductor element formed therein, have their whole surface covered with a thick oxide film which is produced by the local oxidation of the semiconductor body.The new isolation process is well-suited for a bipolar type semiconductor device, wherein the deep groove is formed so as to reach a semiconductor substrate through an N.sup.+ -type buried layer, and a thick oxide film formed simultaneously with the aforementioned thick oxide film isolates the base region and collector contact region of a bipolar transistor.