A liquid crystal device includes a pair of substrates, a liquid crystal layer provided between the substrates, and a plurality of sub-pixels each having a transmissive display region and a reflective display region. One of the substrates includes switching elements corresponding to the sub-pixels, lines connected to the switching elements, and an insulating film provided on the switching elements and the lines. The insulating film includes first recesses provided in the transmissive display regions, and second recesses provided along boundaries between the adjoining sub-pixels. At least a part of the insulating film other than the first and second recesses planarly overlaps with the reflective display regions. The thickness of the liquid crystal layer is smaller in the reflective display regions than in the transmissive display regions having the first recesses. The depth of the second recesses is smaller than the depth of the first recesses.