Over a semiconductor substrate, a gate insulating film including an interfacial layer, a HfON film, and a HfSiON film is formed. Then, over the HfSiON film, an Al-containing film and a mask layer are formed. Subsequently, the mask layer and the Al-containing film are selectively removed from an n-channel MISFET formation region. Then, a rare-earth-element-containing film is formed over the HfSiON film in the n-channel MISFET formation region and over the mask layer in a p-channel MISFET formation region. Heat treatment is performed to cause a reaction between each of the HfON film and the HfSiON film and the rare-earth-element-containing film in the n-channel MISFET formation region and cause a reaction between each of the HfON film and the HfSiON film and the Al-containing film in the p-channel MISFET formation region. Thereafter, the unreacted rare-earth-element-containing film and the mask layer are removed, and then metal gate electrodes are formed.