A technique of improving the breakdown voltage of a semiconductor device is provided. There is provided a method of manufacturing a semiconductor device comprising a process of forming a p-type semiconductor layer that contains a p-type impurity and has a dislocation density of not higher than 1.0×107 cm−2, on an n-type semiconductor layer that contains an n-type impurity and has a dislocation density of not higher than 1.0×107 cm−2; an n-type semiconductor region forming process of forming an n-type semiconductor region in at least part of the p-type semiconductor layer by ion-implanting an n-type impurity into the p-type semiconductor layer and performing heat treatment to activate the ion-implanted n-type impurity; and a process of forming a trench that is recessed to pass through the p-type semiconductor layer and reach the n-type semiconductor layer. In the n-type semiconductor region forming process, a p-type impurity diffusion region in which the p-type impurity contained in the p-type semiconductor layer is diffused is formed in at least part of the n-type semiconductor layer that is located below the n-type semiconductor region.