Despite improvements in FinFETs and strained silicon devices, transistors continue to suffer performance degradation as device dimensions shrink. These include, in particular, leakage of charge between the semiconducting channel and the substrate. An isolated channel FinFET device prevents channel-to-substrate leakage by inserting an insulating layer between the channel (fin) and the substrate. The insulating layer isolates the fin from the substrate both physically and electrically. To form the isolated FinFET device, an array of bi-layer fins can be grown epitaxially from the silicon surface, between nitride columns that provide localized insulation between adjacent fins. Then, the lower fin layer can be removed, while leaving the upper fin layer, thus yielding an interdigitated array of nitride columns and semiconducting fins suspended above the silicon surface. A resulting gap underneath the upper fin layer can then be filled in with oxide to isolate the array of fin channels from the substrate.