Abstract: A vertical insulated gate transistor such as a UMOSFET is manufactured. A source region of first conductivity type is formed on the bottom surface of a substrate. A base region of second conductivity type is formed on the source region. A low-impurity-concentration drift region is formed on the base region. On the top surface of this multilayer structure, a truncated U groove is formed. A buried gate electrode is formed inside the truncated U groove. This structure is effective to reduce gate-drain capacitance Cgd, gate-source capacitance Cgs, and drain resistance r.sub.d, thereby realizing a high-frequency high-output device. A distance between the gate and the drain is determined in a self-aligning manner, so that a fine structure and a high-frequency operation are easily realized and production yield is improved.