It is an object to manufacture a highly reliable semiconductor device including a thin film transistor whose electric characteristics are stable. An insulating layer which covers an oxide semiconductor layer of the thin film transistor contains a boron element or an aluminum element. The insulating layer containing a boron element or an aluminum element is formed by a sputtering method using a silicon target or a silicon oxide target containing a boron element or an aluminum element. Alternatively, an insulating layer containing an antimony (Sb) element or a phosphorus (P) element instead of a boron element covers the oxide semiconductor layer of the thin film transistor.