A semiconductor device and the fabrication method thereof are provided. The fabrication method includes providing a substrate module plate having a plurality of substrates; attaching at least one sensor chip to each of the substrates of the substrate module plate; electrically connecting each of the sensor chips to each of the substrates through bonding wires; forming an insulating layer between each sensor chip on the substrate module plate, wherein the height of the insulating layers are not greater than the thickness of the sensor chips so as to prevent flash from the insulating layers from contaminating the sensor chips; forming an adhesive lip on the insulating layer or forming a second insulating layer followed by forming the adhesive layer, wherein the adhesive layer or the second insulating layer is higher than the highest loop-height of the bonding wires; adhering a light transmitting cover to each adhesive layer to cover the sensor chip; and cutting the substrate module plate to separate the substrates to form a plurality of semiconductor devices each integrated with at least one sensor chip. As the adhesive layers are not in contact with the bonding wires, the problems of damaging or breaking the bonding wires can be prevented in the process of adhering the light transmitting cover.