The present disclosure describes a method of fabricating a semiconductor structure that includes forming a fin structure on a substrate, forming a polysilicon gate structure on a first portion of the fin structure, forming an opening in a second portion of the fin structure, wherein the first and second portions of the fin structure is adjacent to each other, forming a recess laterally on a sidewall of the first portion of the fin structure underlying the polysilicon gate structure, and forming an inner spacer structure within the recess. The inner spacer structure comprises an inner air spacer enclosed by a first dielectric spacer layer and a second dielectric spacer layer.