A method of manufacturing an active matrix substrate is provided that uses a technique of transferring a thin film device. In forming thin film transistors and pixel electrodes on an original substrate before transfer, an insulator film such as an interlayer insulation film or the like, is previously removed before the pixel electrodes are formed. Further, the original substrate is separated by exfoliation to transfer the device to a transfer material to cause the pixel electrodes to partially appear in the surface or the vicinity of the surface of the device. This portion permits application of a voltage to a liquid crystal through the pixel electrode.