A s_mall s_ource/d_rain c_ontact (SSDC) formation technology has been developed. In the SSDC structure, self‐aligned contacts to small source/drain (S/D) regions can be formed without any contact holes because a local TiSi2interconnect which extends over isolation fields is directly combined with the whole S/D surface area. It is essential in the SSDC process that the local TiSi2interconnects are formed from a solid phase reaction of the amorphous‐Si (sputter deposited)/Ti (sputter deposited) bilayer containing a low oxygen concentration. The local TiSi2interconnect is thermally stable up to 900 °C furnace annealing. This thermal stability allows one to use the TiSi2layer as a solid phase diffusion source for the S/D formation. Consequently submicronn‐channel metal–oxide–semiconductor field effect transistors with the SSDC structure were fabricated and tested, with a physical gate size of 0.42 μm(length)×2.0 μm(width), and the S/D area was shrunk down to 0.4 μm(length)×2.0 μm(width). The maximum linear transconductance was ∼31 mS/mm.