The present invention provides a semiconductor device with an improved yield ratio and reduced height and manufacturing cost; and a method of manufacturing the semiconductor device. According to an aspect of the present invention, there is provided a semiconductor device including a substrate, a semiconductor element that is flip-chip connected to the substrate, and a molding portion that seals the semiconductor element. The side surfaces of the semiconductor element are enclosed by the molding portion. An upper surface of the semiconductor element is not enclosed by the molding portion. Damage to the side surfaces of the semiconductor element caused by an external impact when the semiconductor device is stored is minimized, because the molding portion protects the side surfaces of the semiconductor element. Accordingly, the yield ratio of the semiconductor device is improved. The height of the semiconductor device can also be reduced since the upper surface of the semiconductor element is not enclosed with the molding portion.