The present invention provides a semiconductor device capable of preventing deterioration in carrier mobility of a semiconductor layer, which is a quality of the interface between the semiconductor layer and an insulating layer, and a method of manufacturing the semiconductor device. In the semiconductor device, an interface layer is provided between a semiconductor layer made of active polycrystalline silicon and an insulating layer made of silicon oxide. The nitrogen element in silicon nitride diffuses into the semiconductor layer made of active polycrystalline silicon to compensate for lattice strain of the active polycrystalline silicon film, to satisfy the desired quality of the interface between the semiconductor layer and the insulating layer.