The semiconductor device includes: a channel layer, a barrier layer, a first insulating film, and a second insulating film, each of which is formed above a substrate; a trench that penetrates the second insulating film, the first insulating film, and the barrier layer to reach the middle of the channel layer; and a gate electrode arranged in the trench and over the second insulating film via a gate insulating film. The bandgap of the second insulating film is smaller than that of the first insulating film, and the bandgap of the second insulating film is smaller than that of the gate insulating film GI. Accordingly, a charge (electron) can be accumulated in the second (upper) insulating film, thereby allowing the electric field strength at a corner of the trench to be improved. As a result, a channel is fully formed even at a corner of the trench, thereby allowing an ON-resistance to be reduced and an ON-current to be increased.