A trench is formed in a semiconductor region. A dielectric layer lining sidewalls and bottom surface of the trench is formed. The dielectric layer is thicker along lower sidewalls and the bottom surface than along upper sidewalls of the trench. After forming the dielectric layer, a lower portion of the trench is filled with a shield electrode. Dielectric spacers are formed along the upper trench sidewalls. After forming the dielectric spacers, an inter-electrode dielectric (IED) is formed in the trench over the shield electrode. After forming the IED, the dielectric spacers are removed.