A first Group III nitride compound semiconductor layer 31 is etched, to thereby form an island-like structure such as a dot-like, stripe-shaped, or grid-like structure, so as to provide a trench/post. Thus, a second Group III nitride compound layer 32 can be epitaxially grown, vertically and laterally, from a top surface of the post and a sidewall/sidewalls of the trench serving as a nucleus for epitaxial growth, to thereby bury the trench and also grow the layer in the vertical direction. In this case, propagation of threading dislocations contained in the first Group III nitride compound semiconductor layer 31 can be prevented in the upper portion of the second Group III nitride compound semiconductor 32 that is formed through lateral epitaxial growth. As a result, a region having less threading dislocations is formed at the buried trench.