A highly reliable structure is provided when high-speed driving of a semiconductor device is achieved by improving on-state characteristics of the transistor. The on-state characteristics of the transistor are improved as follows: an end portion of a source electrode and an end portion of a drain electrode overlap with end portions of a gate electrode, and the gate electrode surely overlaps with a region serving as a channel formation region of an oxide semiconductor layer. Further, embedded conductive layers are formed in an insulating layer so that large contact areas are obtained between the embedded conductive layers and the source and drain electrodes; thus, the contact resistance of the transistor can be reduced. Prevention of coverage failure with a gate insulating layer enables the oxide semiconductor layer to be thin; thus, the transistor is miniaturized.