The present invention relates generally to semiconductors, and more specifically to semiconductor memory device structures and an improved fabrication process for making the same. The improved fabrication process allows the self-aligned contacts and local interconnects to the processed simultaneously. The process allows the minimal distance requirement between the self-aligned contacts and the local interconnects to be widened, which makes the patterning of self-aligned contacts and local interconnects easier. The widened minimal distance requirement also allows further memory cell shrinkage. The improved structures of self-aligned contacts and local interconnects also have excellent isolation characteristic.