Abstract: The invention describes recessed source/drain regions formed in trenches in the substrate that provide a smooth surface topology, smaller devils and improved device performance. The recessed source/drain regions have two conductive regions: the first upper lightly doped region on the trench sidewalls, and the second lower region under the trench bottom. In addition, two buried layers are formed between adjacent source/drain regions: a threshold voltage layer near the substrate surface and an anti-punchthrough layer formed at approximately the same depth as the lower source/drain regions on the trench bottoms. The upper lightly doped source/drain region and the anti-punchthrough layer have the effect of increasing the punchthrough voltage without increasing the threshold voltage. The upper and lower source/drain regions lower the overall resistivity of the source/drain allowing use of smaller line pitches and therefore smaller devils.