A method of manufacturing a semiconductor device including at least a first substrate, a transparent second substrate, and a liquid crystal layer held between the first substrate and the second substrate, the method comprising the steps of:
- flattening a first insulating film formed on the first substrate;
- forming stripe-shaped electrodes on the first insulating film;
- forming a second insulating layer comprising an organic resin including a black dye or carbon black covering the stripe-shaped electrodes;
- and
- flattening the surfaces of the stripe-shaped electrodes and the surface of the second insulating layer so that both of the surfaces form a same plane, and boundary portions of the stripe-shape electrodes are filled with the second insulating layer;
- wherein the flattening step is carried out with a precision of not larger than 20% of a thickness of the electrodes.