Detailed study on how the plasma process during the sidewall spacer formation suppresses the formation of silicide is done. In non-patterned wafer test, it is found that both fluorocarbon reactive ion etch (RIE) and TEOS plasma-enhanced deposition processes modify the Si surface so that the silicide reaction is chemically inhibited or suppressed. In order to investigate the cause of the chemical modification, we analyze the elements on the silicon surface through Auger Electron Spectroscopy (AES). From the AES result, it is found that the carbon induces chemical modification which blocks the reaction between silicon and nickel. Thus, protecting the surface from the carbon-containing plasma process prior to nickel deposition appears critical in successful silicide formation.