A memory device that is as small in area as possible and has an extremely long data retention period. A transistor with extremely low leakage current is used as a cell transistor of a memory element in a memory device. Moreover, in order to reduce the area of a memory cell, the transistor is formed so that its source and drain are stacked in the vertical direction in a region where a bit line and a word line intersect each other. Further, a capacitor is stacked above the transistor.