Variation in the electrical characteristics of transistors is minimized and reliability of the transistors is improved. A display device includes a pixel portion 104 and a driver circuit portion 106 outside the pixel portion. The pixel portion includes a pixel transistor, a first insulating layer 122 which covers the pixel transistor and includes an inorganic material, a second insulating layer 124 which is over the first insulating layer and includes an organic material, and a third insulating layer 128 which is over the second insulating layer and includes an inorganic material. The driver circuit portion includes a driving transistor for supplying a signal to the pixel transistor, and the first insulating layer covering the driving transistor. The second insulating layer is not formed in the driver circuit portion.