An object is to provide a highly reliable semiconductor device including a thin film transistor having stable electric characteristics. In addition, another object is to manufacture a highly reliable semiconductor device at low cost with high productivity. In a method for manufacturing a semiconductor device including a thin film transistor including an oxide semiconductor layer as a channel formation region, the oxide semiconductor layer is heated under a nitrogen atmosphere to lower its resistance, thereby forming a low-resistance oxide semiconductor layer. Further, resistance of a region of the low-resistance oxide semiconductor layer, which is overlapped with a gate electrode layer, is selectively increased, thereby forming a high-resistance oxide semiconductor layer. Resistance of the oxide semiconductor layer is increased by forming a silicon oxide film in contact with the oxide semiconductor layer by a sputtering method.