A semiconductor device including a transistor having a reduced number of oxygen vacancies in a channel formation region of an oxide semiconductor with stable electrical characteristics or high reliability is provided. A gate insulating film is formed over a gate electrode; an oxide semiconductor layer is formed over the gate insulating film; an oxide layer is formed over the oxide semiconductor layer by a sputtering method to form an stacked-layer oxide film including the oxide semiconductor layer and the oxide layer; the stacked-layer oxide film is processed into a predetermined shape; a conductive film containing Ti as a main component is formed over the stacked-layer oxide film; the conductive film is etched to form source and drain electrodes and a depression portion on a back channel side; and portions of the stacked-layer oxide film in contact with the source and drain electrodes are changed to an n-type by heat treatment.