One object is to provide a semiconductor device that includes an oxide semiconductor and is reduced in size with favorable characteristics maintained. The semiconductor device includes an oxide semiconductor layer, a source electrode and a drain electrode in contact with the oxide semiconductor layer, a gate electrode overlapping with the oxide semiconductor layer; and a gate insulating layer between the oxide semiconductor layer and the gate electrode. The source electrode or the drain electrode includes a first conductive layer and a second conductive layer having a region extended in a channel length direction from an end face of the first conductive layer. The sidewall insulating layer has a length of a bottom surface in the channel length direction smaller than a length in the channel length direction of the extended region of the second conductive layer and is provided over the extended region.