Abstract: A method includes depositing a dielectric layer over a substrate, and etching the dielectric layer to form an opening and to expose a first conductive feature underlying the dielectric layer. The dielectric layer is formed using a precursor including nitrogen therein. The method further includes depositing a sacrificial spacer layer extending into the opening, and patterning the sacrificial spacer layer to remove a bottom portion of the sacrificial spacer layer. A vertical portion of the sacrificial spacer layer in the opening and on sidewalls of the dielectric layer is left to form a ring. A second conductive feature is formed in the opening. The second conductive feature is encircled by the ring, and is over and electrically coupled to the first conductive feature. At least a portion of the ring is removed to form an air spacer.