A method for shrinking a semiconductor device is disclosed. An etch stop layer is eliminated and is replaced with a consumable second sidewall spacers so that stacked gate structures of the device can be positioned closer together, thus permitting shrinking of the device. In a preferred embodiment, the present invention provides a method for forming self-aligned contacts by forming multi-layer structures on a region on a semiconductor substrate, forming first sidewall spacers around the multi-layer structures, forming second sidewall spacers around the first sidewall spacers, forming a dielectric layer directly over the substrate and in contact with second sidewall spacers, forming an opening in the dielectric layer to expose a portion of the region on the semiconductor substrate adjacent the second sidewall spacers, and filling the opening with a conductive material to form a contact.