HEMT semiconductor device with a stepped sidewall

A semiconductor device includes a semiconductor substrate, first and second nitride-based semiconductor layers, S/D electrodes, a gate electrode, and a first passivation layer. The first nitride-based semiconductor layer is disposed over the semiconductor substrate. The second nitride-based semiconductor layer is disposed on the first nitride-based semiconductor layer and has a bandgap greater than a bandgap of the first nitride-based semiconductor layer, so as to form a 2DEG region. The S/D electrodes is disposed over the second nitride-based semiconductor layer. The gate electrode is disposed between the S/D electrodes. The first passivation layer is disposed over the second nitride-based semiconductor layer. Edges of the first and second nitride-based semiconductor layers and the first passivation layer collectively form a stepped sidewall over the semiconductor substrate. The stepped sidewall includes at least one laterally-extending portions with at least two riser portion connecting the at least one laterally-extending portion.