Strained Semiconductor Device with Recessed Channel

A method of forming a semiconductor device, the method comprising:

• providing a substrate;
• forming a first gate electrode over the substrate;
• forming a first stress-inducing region and a second stress-inducing region on opposing sides of the first gate electrode in the substrate;
• forming source/drain extensions (SDEs) on opposing sides of the first gate electrode in the substrate;
• removing the first gate electrode;
• forming a channel recess in the substrate between the first stress-inducing region and the second stress-inducing region, the first stress-inducing region and the second stress-inducing region extending into an area wherein the SDEs overlap the channel recess;
• and
• forming a second gate electrode over the channel recess.

A semiconductor device comprising:

• a substrate having a recess formed therein and stress-inducing regions on opposing sides of the recess;
• a gate dielectric in the recess;
• a gate electrode over the gate dielectric;
• and
• source/drain regions in the substrate on opposing sides of the gate electrode, the source/drain regions comprising raised source/drain extensions (SDEs) such that the recess extends below a top surface of the raised SDEs.