A semiconductor device includes a substrate having an active region, a first gate structure over a top surface of the substrate, a second gate structure over the top surface of the substrate, a pair of first spacers on each sidewall of the first gate structure, a pair of second spacers on each sidewall of the second gate structure, an insulating layer over at least the first gate structure, a first conductive feature over the active region and a second conductive feature over the substrate. Further, the second gate structure is adjacent to the first gate structure and a top surface of the first conductive feature is coplanar with a top surface of the second conductive feature.