By adopting atomic layer etching as an active patterning technique for InGaZnO (IGZO) based thin-film transistors in a 300-mm fab, we demonstrate 40 nm gate-length two-transistors zero-capacitor (2T0C) dynamic random-access memory (DRAM) devices with retention time >200 s at 95 ∘ C. Our extensive 2T0C retention tests clarify that retention property can be boosted by 1) suppression of sidewall metal residues to be extrinsic leakage paths; 2) reduction of the subthreshold leakage by negative hold voltage optimization; 3) optimal gate oxide thickness to avoid gate leakage enhancement. Additionally, by utilizing dedicated large gate-area test devices, we successfully identify the driving mechanisms of gate leakage in write and read transistors as Poole-Frenkel emission and direct tunnelling, respectively. The devices can also achieve endurance >1012 cycles with write time <10 ns at 95 ∘ C, satisfying the requirements towards future 2T0C DRAM applications with significantly reduced refresh rate.