A method for providing high density dynamic memory cells which provides self-alignment of both V-MOSFET device elements and their interconnections through the use of a device-defining masking layer having a plurality of parallel thick and thin regions. Holes are etched in portions of the thin regions with the use of an etch mask defining a plurality of parallel regions aligned perpendicular to the regions in the masking layer. V-MOSFET devices having self-aligned gate electrodes are formed in the holes and device interconnecting lines are formed under the remaining portions of the thin regions. A combination of anisotropic etching and directionally dependent etching, such as reaction ion etching, may be used to extend the depth of V-grooves. A method of eliminating the overhang of a masking layer after anisotropic etching includes the oxidation of the V-groove followed by etching to remove both the grown oxide and the overhang is also disclosed.