This paper presents a novel flash memory cell based on localized charge trapping in a dielectric layer and on a new read operation. It is based on the storage of a nominal /spl sim/400 electrons above a n/sup +//p junction. Programming is performed by channel hot electron injection and erase by tunneling enhanced hot hole injection. The new read methodology is very sensitive to the location of trapped charge above the source. This single device cell has a two physical bit storage capability. The cell shows improved erase performances, no over erase and erratic bit issues, very good retention at 250/spl deg/C, and endurance up to 1M cycles. Only four masks are added to a standard CMOS process to implement a virtual ground array. In a typical 0.35 μm process, the area of a bit is 0.315 μm 2 and 0.188 μm 2 in 0.25 μm technology. All these features and the small cell size compared to any other flash cell make this device a very attractive solution for all NVM applications.