A semiconductor device has lateral conductors or traces that are formed of nanotubes such as carbon. A sacrificial layer is formed overlying the substrate. A dielectric layer is formed overlying the sacrificial layer. A lateral opening is formed by removing a portion of the dielectric layer and the sacrificial layer which is located between two columns of metallic catalysts. The lateral opening includes a neck portion and a cavity portion which is used as a constrained space to grow a nanotube. A plasma is used to apply electric charge that forms an electric field which controls the direction of formation of the nanotubes. Nanotubes from each column of metallic catalyst are laterally grown and either abut or merge into one nanotube. Contact to the nanotube may be made from either the neck portion or the columns of metallic catalysts.