A semiconductor device includes a substrate, a semiconductor layer formed on the substrate, and an optically functional portion formed by using at least a portion of the semiconductor layer. The optically functional portion performs light emission or light reception. The semiconductor device further includes a first driving electrode that is electrically connected to a semiconductor layer on a surface of the optically functional portion, and the first driving electrode drives the optically functional portion. The semiconductor device further includes an encapsulating electrode that is formed on the semiconductor layer to surround periphery of the optically functional portion, and electrically connected to the first driving electrode.