An object is to provide a semiconductor device in which, through a simpler process, junction capacitance and power consumption can be reduced more than a conventional semiconductor device, and a manufacturing method thereof. An insulating film including an opening is formed over a base substrate and a part of a bond substrate is transferred to the base substrate, with the insulating film interposed therebetween, whereby a semiconductor film including a cavity between the semiconductor film and the base substrate is formed over the base substrate. Then, a semiconductor device including a semiconductor element such as a transistor is manufactured using the semiconductor film. The transistor includes a cavity between the base substrate and the semiconductor film used as an active layer. One cavity may be provided or a plurality of cavities may be provided.