Lithographic limitations on gate and induced channel length in MOSFETS are avoided by forming non-planar MOSFETS in a cavity extending into a semiconductor substrate. The gate insulator and channel region lie proximate a cavity sidewall having angle α preferably about ≧90 degrees with respect to the semiconductor surface. The channel length depends on the bottom depth of the cavity and the depth from the surface of a source or drain region adjacent the cavity. The corresponding drain or source lies at the cavity bottom. The cavity sidewall extends therebetween. Neither depth is lithographic dependent. Very short channels can be consistently formed, providing improved performance and manufacturing yield. Source, drain and gate connections are brought to the same surface so that complex circuits can be readily constructed. The source and drain regions are preferably formed epitaxially and strain inducing materials can be used therein to improve channel carrier mobility.