This invention provides a semiconductor device with an element isolation implemented by a method of manufacturing a semiconductor device comprising the steps of: forming a pad oxide film 140 and a nitride film 150 sequentially on a silicon layer 130 in an element region S; forming a metal oxide film 180 for generating a fixed electric charge on the nitride film 150 and on the silicon layer 130 in an element isolation region A; forming a field oxide film 160 in the element isolation region A by implementing an oxidation treatment; and removing the metal oxide film 180 on the nitride film 150, the nitride film 150 and the pad oxide film 140. In the semiconductor device, the threshold voltage of a parasitic transistor is made high and prevented from turning on, and the influence of leak current is reduced and the hump characteristic of element is restrained.