A semiconductor device and a method of manufacturing the device using a (000-1)-faced silicon carbide substrate are provided. A SiC semiconductor device having a high blocking voltage and high channel mobility is manufactured by optimizing the heat-treatment method used following the gate oxidation. The method of manufacturing a semiconductor device includes the steps of forming a gate insulation layer on a semiconductor region formed of silicon carbide having a (000-1) face orientation, forming a gate electrode on the gate insulation layer, forming an electrode on the semiconductor region, cleaning the semiconductor region surface. The gate insulation layer is formed in an atmosphere containing 1% or more H2O (water) vapor at a temperature of from 800° C. to 1150° C. to reduce the interface trap density of the interface between the gate insulation layer and the semiconductor region.