A memory device that includes a semiconductor substrate, and an array of memory cells, each cell being electrically isolated from adjacent cells and including an island formed from the substrate, the island having a top portion and at least one sidewall portion, and being spaced apart from other islands by a bottom surface on the substrate, a capacitor formed contiguous with the sidewall portion, and a transistor formed on the top portion of the island, the transistor including a gate oxide layer formed on a surface of the top portion, a gate formed on the gate oxide layer, and a first and a second diffused regions formed in the top portion, the first diffused region being spaced apart from the second diffused region.