A semiconductor device includes a semiconductor layer having a main surface in which a trench is formed, a first-conductivity-type body region formed along a sidewall of the trench in a surface layer portion of the main surface of the semiconductor layer, a second-conductivity-type impurity region formed along the sidewall of the trench in a surface layer portion of the body region, a gate insulating layer formed on an inner wall of the trench, a gate electrode that is embedded in the trench and that faces the body region and the impurity region with the gate insulating layer placed between the gate electrode and the body region and between the gate electrode and the impurity region, a contact electrode that passes through the sidewall of the trench from inside the trench and is drawn out to the surface layer portion of the main surface of the semiconductor layer and is electrically connected to the body region and to the impurity region, and an embedded insulating layer that is interposed between the gate electrode and the contact electrode in the trench and that insulates the gate electrode and the contact electrode.