Systems and methods of fabricating a U-shaped memory device with a recessed channel and a segmented/separated ONO layer are provided. Multibit operation is facilitated by a separated ONO layer, which includes a charge trapping region on sidewalls of polysilicon gate structures adjacent to source/drain regions. Programming and erasing of the memory cells is facilitated by the relatively short distance between acting source regions and the gate. Additionally, short channel effects are mitigated by a relatively long U-shaped channel region that travels around the recessed polysilicon gate thereby adding a depth dimension to the channel length.