As the minimum VLSI feature size continues to scaie down to the 0.1-0.2-ju.m regime, the need for iow-resistance iocai interconnections wiii become increasingiy critical. Although reduction in the MOSFET channel length will remain the dominant factor in achieving higher circuit performance, existing local interconnection materials will impose greater than acceptable performance limitations. We review the state-of-the-art salicide and polycide processes, with emphasis on work at IBM, and discuss the limitations that pertain to future implementations in high-performance VLSI circuit applications. A brief review of various silicide-based and tungsten-based approaches for forming local interconnections is presented, along with a more detailed description of a tungsten-based "damascene" local interconnection approach.