A lateral phase change memory includes a pair of electrodes separated by an insulating layer. The first electrode is formed in an opening in an insulating layer and is cup-shaped. The first electrode is covered by the insulating layer which is, in turn, covered by the second electrode. As a result, the spacing between the electrodes may be very precisely controlled and limited to very small dimensions. The electrodes are advantageously formed of the same material, prior to formation of the phase change material region.