A highly integrated DRAM is provided. A bit line is formed over a first insulator, a second insulator is formed over the bit line, third insulators which are in a stripe shape and the like are formed over the second insulator, and a semiconductor region and a gate insulator are formed to cover one of the third insulators. The bit line is connected to the semiconductor region through first contact plugs. Then, a conductive film is formed and subjected to anisotropic etching to form word lines at side surfaces of the third insulators, and a second contact plug is formed to be connected to a capacitor at a top of the one of the third insulators. By synchronizing the word lines, electric charge is accumulated or released through the capacitor. With such a structure, the area of a memory cell can be 4F2.