NiSi2 nanocrystals embedded in the SiO2 layer exhibiting a memory effect have been formed by dry oxidation of an amorphous Si/Ni/SiO2 structure at 900 degrees C. A pronounced capacitance-voltage hysteresis was observed with a memory window of I V under the 2 V programming voltage for the samples. For dry oxidation at 800 degrees C, no distinct memory effect was detected. The processing of the structure is compatible with the current manufacturing technology of the semiconductor industry. The structure represents a viable candidate for low-power nanoscaled nonvolatile memory devices. (c) 2005 American Vacuum Society.