This document discusses two main techniques for isolating transistors in semiconductor fabrication: LOCOS (Local Oxidation of Silicon) and STI (Shallow Trench Isolation). LOCOS uses a thermal oxidation process which results in a "bird's beak" encroachment that wastes surface area. STI improves on LOCOS by etching shallow trenches and filling them with deposited oxide, avoiding the bird's beak effect but requiring more processing steps. Both techniques utilize thermally grown oxides and masks like silicon nitride to selectively grow isolation oxides and define active device areas.