Edges of source and drain regions along the direction of a channel of a field effect transistor are formed within an active area offset from the boundary between the active area and a shallow trench isolation structure. Such a structure may be manufactured by forming a gate electrode structure that overlies the boundary so that edges of the source and drain regions are self aligned to the edges of the gate electrode structure on the active area side of the boundary. Unnecessary portions of the gate electrode that does not overlie the source and drain regions may be removed to reduce parasitic capacitance. Shallow trench isolation edge current is eliminated since the semiconductor regions in the current path of the field effect transistor are offset from the boundary between the active area and the shallow trench isolation structure.