After an element isolation region is formed using a field-forming silicon nitride film, the silicon nitride film and a semiconductor substrate are patterned. Thereafter, the silicon nitride film and the semiconductor substrate are patterned, thereby forming a gate trench reaching the semiconductor substrate in an active region. Next, after a gate electrode is formed within a gate trench, the silicon nitride film is removed, thereby forming a contact hole. A contact plug is buried into this contact hole. Accordingly, a diffusion layer contact pattern becomes unnecessary, and the active region can be reduced. Because a gate electrode is buried in the gate trench, a gate length is increased, and a sub-threshold current can be reduced.