To provide a semiconductor device having a vertical JFET excellent in off-state performance without reducing a production yield. A gate region quadrangular in the cross-section along a channel width direction is formed below a source region by impurity ion implantation. By first etching, the source region over the upper surface of the gate region is removed to separate therebetween. Then, the upper surface of the gate region is processed by second etching having an etching rate lower at the side surface than at the center of the gate region. The resulting gate region has a lower surface parallel to the substrate surface and an upper surface below a boundary between the source region and the channel formation region and having, in the cross-section along the channel width direction, a downward slope from the side surface to the center. As a result, a channel length with reduced variations can be obtained.