A method limits lateral epitaxy growth at an N-P boundary area using an inner spacer. The method may include forming inner spacers on inner sidewalls of the inner active regions of a first polarity region (e.g., n-type) and an adjacent second polarity region (e.g., p-type) that are taller than any outer spacers on an outer sidewall of the inner active regions. During forming of semiconductor layers over the active regions (e.g., via epitaxy), the inner spacers abut and limit lateral forming of the semiconductor layers. The method generates larger semiconductor layers than possible with conventional approaches, and prevents electrical shorts between the semiconductor layers in an N-P boundary area. A structure includes the semiconductor epitaxy layers separated from one another, and abutting respective inner spacers. Any outer spacer on the inner active region is shorter than a respective inner spacer.