Provided is a semiconductor device having, over a semiconductor substrate, a control gate electrode and a memory gate electrode which are adjacent to each other and constitute a nonvolatile memory. The height of the memory gate electrode is lower than the height of the control gate electrode. A metal silicide film is formed over the upper surface of the control gate electrode, but not formed over the upper surface of the memory gate electrode. The memory gate electrode has, over the upper surface thereof, a sidewall insulating film made of silicon oxide. This sidewall insulating film is formed in the same step as that for the formation of respective sidewall insulating films over the sidewalls of the memory gate electrode and the control gate electrode. The present invention makes it possible to improve the production yield and performance of the semiconductor device having a nonvolatile memory.