The interlayer diffusion mechanism between an AlNd (alloy of 98 at.% Al and 2 at.% Mo) main conducting layer and a Mo buffer layer has been studied. We have obtained a method to fabricate a stable and low resistivity ohmic contact between a metal line and a transparent conductive oxide (TCO) layer using this mechanism. The interlayer diffusion and reaction between the AlNd layer and the Mo buffer layer is induced by the thermal annealing at around 300 degreesC. The interfacial product layer created by this reaction prohibits the oxygen diffusion from TCO to AlNd. In addition, the oxygen diffusion is promoted by the thermal annealing after TCO deposition. (C) 2002 Published by Elsevier Science B.V.