On a first substrate are formed a TFT provided to each pixel, an insulating film which covers the TFT, and a reflective layer which is provided on the insulating film so as to be insulated from the TFT and reflects light incident from a second substrate side. The reflective layer is covered with a passivation film on which a first electrode made of a transparent conductive material, such as ITO having the work function equivalent to a second electrode, is formed and connected to the TFT. The passivation film covering the reflective layer prevents the reflective surface of the reflective layer from deteriorating in reflection properties during a process for connecting the TFT and the first electrode. Further, the first and second electrodes having similar characteristics can symmetrically AC drive the liquid crystal layer.