A semiconductor device has a channel layer formed above a substrate, a barrier layer formed over the channel layer and having a band gap larger than that of the channel layer, a trench passing through the barrier layer as far as a midway of the channel layer, and a gate electrode disposed byway of a gate insulation film in the inside of the trench. Then, the end of the bottom of the trench is in a rounded shape and the gate insulation film in contact with the end of the bottom of the trench is in a rounded shape. By providing the end of the bottom of the trench with a roundness as described above, a thickness of the gate insulation film situated between the end of the bottom of the gate electrode and the end of the bottom of the trench can be decreased. Thus, the channel is formed also at the end of the bottom of the trench to reduce the resistance of the channel.