A field effect transistor occupying a small area and a semiconductor device using the same can be obtained. A gate electrode is provided on a substrate on which a source region is provided with a first interlayer insulating film interposed therebetween. The gate electrode is covered with a second interlayer insulating film. A contact hole for exposing a part of the surface of the source region is provided so as to penetrate through the first interlayer insulating film, the gate electrode, and the second interlayer insulating film. A sidewall surface of the contact hole is covered with a gate insulating film. A first semiconductor layer of a first conductivity type is provided on the surface of the source region in contact therewith up to the lower surface of the gate electrode. A channel semiconductor layer is provided on the surface of the first semiconductor layer up to the upper surface of the gate electrode. A second semiconductor layer of a first conductivity type serving as a drain region is provided on the channel semiconductor layer.