The present application provides a laterally diffused metal oxide semiconductor (LDMOS) transistor and a manufacturing method thereof. The transistor comprising: a semiconductor substrate having a doping region, wherein the doping region comprises a first well region and a second well region with opposite doping types; a source region, a drain region, a shallow trench isolation (STI) structure comprising a laminated structure having an alternate layers of insulating material and ferroelectric material, a gate, a contact hole, and a metal layer. The LDMOS transistor simultaneously increases breakdown voltage (BV) and reduces on-resistance (Ron).