A FinFET device is provided. The FinFET device includes a plurality of fin structures that protrude upwardly out of a dielectric isolation structure. The FinFET device also includes a plurality of gate structures that partially wrap around the fin structures. The fin structures each extend in a first direction, and the gate structures each extend in a second direction different from the first direction. An epitaxial structure is formed over at least a side surface of each of the fin structures. The epitaxial structure includes: a first epi-layer, a second epi-layer, or a third epi-layer. The epitaxial structure formed over each fin structure is separated from adjacent epitaxial structures by a gap. A silicide layer is formed over each of the epitaxial structures. The silicide layer at least partially fills in the gap. Conductive contacts are formed over the silicide layer.