During the early period of reading development, children gain phonological (letter-to-sound mapping) and semantic knowledge (storage and retrieval of word meaning). Their reading ability changes rapidly, accompanied by their learning-induced brain plasticity as they learn to read. This study aims to identify the specialization of phonological and semantic processing in early childhood using a combination of univariate and multivariate pattern analysis. Nineteen typically developing children between the age of five to seven performed visual word-level phonological (rhyming) and semantic (related meaning) judgment tasks during functional magnetic resonance imaging (fMRI) scans. Our multivariate analysis showed that young children with good reading ability have already recruited the left hemispheric regions in the brain for phonological processing, including the inferior frontal gyrus (IFG), superior and middle temporal gyrus, and fusiform gyrus.Additionally, our multivariate results suggested that the sub-regions of the left IFG were specialized for different tasks. Our results suggest the left lateralization of fronto-temporal regions for phonological processing and bilateral activations of parietal regions for semantic processing during early childhood. Our findings indicate that the neural bases of reading have already begun to be shaped in early childhood for typically developing children, which can be used as a control baseline for comparison of children at-risk for reading difficulties.