A method of forming metal fuses and bonding pads. A conductive layer is formed in a substrate. A dielectric layer is formed over the substrate. The dielectric layer has an opening that exposes a portion of the conductive layer. A metallic layer is formed over the dielectric layer. The metallic layer is patterned to form a metal fuse and a bonding pad. The bonding pad is electrically connected to the conductive layer via the opening. Both the metal fuse and the bonding pad have undercut sidewalls. Spacers are formed on the undercut sidewalls of the metal fuse and the bonding pad. Finally, a passivation layer that exposes the metal fuse and the bonding pad is formed over the substrate.