A semiconductor device and method for fabricating a semiconductor device is disclosed. An exemplary semiconductor device includes a semiconductor substrate including a first device disposed in a first device region, the first device including a first gate structure, first gate spacers formed on the sidewalls of the first gate structure, and first source and drain features and a second device disposed in a second device region, the second device including a second gate structure, second gate spacers formed on the sidewalls of the second gate structure, and second source and drain features. The semiconductor device further includes a contact etch stop layer (CESL) disposed on the first and second gate spacers and interconnect structures disposed on the first and second source and drain features. The interconnect structures are in electrical contact with the first and second source and drain features and in contact with the CESL.