A vertical type power MOSFET remarkably reduces its ON-resistance per area. A substantial groove formation in which a gate structure is constituted is performed beforehand utilizing the LOCOS method before the formation of a p-type base layer and an n.sup.+ -type source layer. The p-type base layer and the n.sup.+ -type source layer are then formed by double diffusion in a manner of self-alignment with respect to a LOCOS oxide film, simultaneously with which channels are set at sidewall portions of the LOCOS oxide film. Thereafter the LOCOS oxide film is removed to provide a U-groove so as to constitute the gate structure. Namely, the channels are set by the double diffusion of the manner of self-alignment with respect to the LOCOS oxide film, so that the channels, which are set at the sidewall portions at both sides of the groove, provide a structure of exact bilateral symmetry, there is no positional deviation of the U-groove with respect to the base layer end, and the length of the bottom face of the U-groove can be made minimally short. Therefore, the unit cell size is greatly reduced, and the ON-resistance per area is greatly decreased.