Abstract: A method is disclosed to form a shallow trench isolation (STI) having reduced junction leakage by avoiding undercutting near the shoulder of the trench. This is accomplished by using the pad oxide as a screen oxide and not removing it by wet dip etch as is normally practiced. Instead, an extra layer of low temperature oxide is added through thermal growth, and then the resulting composite is removed together with minimal undercutting at the shoulder corners of the trench. Subsequently, gate oxide is grown thermally to complete the forming of the STI.