A new MOS integrated circuits fabrication process that realizes self-aligned source and drain contact hole formation is described. This process utilizes a Si3N4film self-alignment liftoff technique for selective oxidation (SALTS). Devices are fabricated using SALTS. It is shown that device packing density and speed show a 30-percent or more improvement over the conventional method at the same minimum lithographic feature size. It is also shown that Si3N4film deposited using the sputtering method does not cause any degradation in device characteristics.