In a rotary electric machine in which a controller and a heat sink are arranged in an extending direction of an output shaft of a motor, in order to provide a rotary electric machine which secures a heat rejection performance and an insulation performance of a semiconductor device to be mounted to the controller and is downsized as a whole, the controller includes a semiconductor device having a drive circuit provided so as to correspond to a stator winding of the motor, and the semiconductor device has a main face held in close contact with the heat sink. On a close contact face between the semiconductor device and the heat sink, a drive circuit is formed so as to extend along an outer edge portion of the heat sink to increase a cooling area.