A semiconductor memory device and fabrication method of same includes the processes of forming sacrifice gates on a silicon substrate with the sacrifice gates apart from each other. A first conductive layer is formed on an exposed portion of the silicon substrate between the sacrifice gates and a first inter-insulation layer is formed that exposes the first conductive layer and the sacrifice gates. The exposed sacrifice gates are removed to form openings and damascene gates are subsequently formed in the openings. Capping layers are formed on the top of the gates and a second conductive layer is formed on the exposed first conductive layer. A second inter-insulation layer is formed on the silicon substrate, and bit line contacts that expose the second conductive layer are formed by etching the second inter-insulation layer.