PURPOSE: To enhance the quality of each transparent electrode pattern and the orientation of a liq. crystal by forming an insulating layer made of silicon dioxide having a specified grain size on each glass substrate by a vapor phase reaction method and forming a transparent electrode on the insulating layer by a sputtering method.

CONSTITUTION: A silicon dioxide film 2 is formed on each glass substrate 1 by a vapor phase reaction method, and a transparent electrode film 31 is deposited on the film 2 by a sputtering method. The film 31 is etched through a resist film 7 to form a patterned transparent electrode film 3. The film 2 is formed by simultaneously feeding gaseous silane (SiH4) and gaseous oxygen into a belt type continuous furnace by means of an injector and by heating them. The grain size of silicon dioxide is controlled to 150W250 by properly regulating the blending ratio between gaseous silane and gaseous oxygen, the flow rates of the gases and the internal temp. of furnace.