The present invention provides a semiconductor device which do not form parasitic transistors in device isolation regions and is capable of narrowing device-to-device intervals, and a method of manufacturing the semiconductor device. The method includes a step for anisotropically etching spots that serve as active regions of a sapphire substrate and causing their ends to become substantially normal to the surface of the sapphire substrate, a step for forming a silicon layer so as to be thicker than an etching depth, a step for implanting silicon ions to amorphize the silicon layer, a step for performing annealing and thereby recrystallizing the amorphized silicon layer, and a step for planarizing the recrystallized silicon layer until the sapphire substrate is exposed, thereby to leave the silicon layer that serves as each of the active regions, whereby device-to-device isolation regions can be formed normal to the sapphire substrate.