Virtual ground memory array and method therefor

A virtual ground memory array (VGA) is formed by a storage layer over a substrate with a conductive layer over the storage layer. The conductive layer is opened according to a patterned photoresist layer. The openings are implanted to form source/drain lines in the substrate, then filled with a layer of dielectric material. Chemical mechanical polishing (CMP) is then performed until the top of the conductive layer is exposed. This leaves dielectric spacers over the source/drain lines and conductive material between the dielectric spacers. Word lines are then formed over the conductive material and the dielectric spacers. As an alternative, instead of using a conductive layer, a sacrificial layer is used that is removed after the CMP step. After removing the sacrificial portions, the word lines are formed. In both cases, dielectric spacers reduce gate/drain capacitance and the distance from substrate to gate is held constant across the channel.