The parasitic bipolar transistor inherent in the power vertical Double Diffused MOSFET (DMOSFET) structure can have a significant impact on its performance and reliability, Selectively formed TiSi2 films on source contacts were used to reduce the contact resistance to nf Source diffusion, These devices exhibit ''kinks'' in the output I-V characteristics. High contact resistance of TiSi2 to moderately doped p-body diffusion causes high output conductance. Detailed two-dimensional numerical simulations are used to investigate the effect of the parasitic bipolar transistor on the static characteristics of scaled silicided DMOSFET's. The high contact resistance of TiSi2-p-body interface leads to a floating potential and causes significant reduction in the MOS gate threshold voltage and results in a premature bipolar turn-on, It is shown that the parasitic bipolar turn-on places an important constraint on the scalability of the device into the submicron regime, A novel self-aligned DMOSPET structure with a shallow diffused p(+) region is shown to eliminate this effect. Numerical simulations are shown to be in excellent agreement with the measured data at various temperatures.