Gadolinium oxide nanocrystal (Gd2O3-NC) memories treated by postdeposition rapid thermal annealing were investigated. Bandgap offset performed by a crystallized Gd2O3-NC dot surrounded by amorphous Gd2O3 dielectrics is successfully demonstrated and proven by the transmission electron microscopy images and electron diffraction pattern. The Gd2O3-NC memory exhibits a hysteresis memory window of 4 V and NC dot density of more than 8.5x10(11) cm(-2). In addition, the formation of Gd2O3-NC and charge loss characteristics on annealing temperature were analyzed and optimized at 850 degrees C. The data endurance of 10(4) program and erase cycling for a sufficient memory window (>2 V) was also observed for the Gd2O3 nanocrystal memory.