A semiconductor memory device and a method for its fabrication are provided. In accordance with one embodiment of the invention the method comprises the steps of forming a gate insulator and a gate electrode overlying a semiconductor substrate. The gate insulator is etched to form an undercut opening beneath an edge of the gate electrode and the undercut opening is filled with a layered structure comprising a charge trapping layer sandwiched between layers of oxide and nitride. A region of the semiconductor substrate is impurity doped to form a bit line aligned with the gate electrode, and a conductive layer is deposited and patterned to form a word line coupled to the gate electrode.

 
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