Abstract: A method includes forming a dummy gate over a semiconductor fin; forming a source/drain epitaxial structure over the semiconductor fin and adjacent to the dummy gate; depositing an interlayer dielectric (ILD) layer to cover the source/drain epitaxial structure; replacing the dummy gate with a gate structure; forming a dielectric structure to cut the gate structure, wherein a portion of the dielectric structure is embedded in the ILD layer; recessing the portion of the dielectric structure embedded in the ILD layer; after recessing the portion of the dielectric structure, removing a portion of the ILD layer over the source/drain epitaxial structure; and forming a source/drain contact in the ILD layer and in contact with the portion of the dielectric structure.