Technique for providing stress sources in transistors in close proximity to a channel region by recessing drain and source regions

A semiconductor device, comprising:

• a first transistor of a first conductivity type, said first transistor comprising:
• a first gate electrode formed above a first channel region;
• a first gate insulation layer formed between said first gate electrode and said first channel region;
• first drain and source regions formed adjacent to said first channel region, said first drain and source regions having a top surface immediately adjacent said first channel region that is recessed with respect to a bottom surface of said first gate insulation layer, wherein said first recessed drain and source regions comprise an embedded first strained semiconductor material;
• and
• a first stressed layer formed above said first drain and source regions, said first stressed layer extending into a recess formed by said first recessed drain and source regions.