The invention provides a power module that is excellent in heat dissipation and suitable for the trend of miniaturization with high density, and provides also a method of manufacturing the same. The power module includes an insulating layer including an inorganic filler and a thermosetting resin composition, a lead formed on the surface of the insulating layer, and a semiconductor chip mounted on a insulating layer side of the lead, and a heat sink formed on the backside of the insulating layer. The semiconductor chip is mounted on the lead by flip-chip bonding and sealed in the insulating layer.