Abstract-Performance enhancements of up to 170% in drain current, maximum transconductance, and field-effect mobility are presented for nMOSFETs fabricated with strained-Si channels compared with identically processed bulk Si MOSFETs. A novel layer structure comprising Si/Si 0 7 Ge 0 3 on an Si 0 85 Ge 0 15 virtual substrate (VS) offers improved performance advantages and a strain-compensated structure. A high thermal budget process produces devices having excellent on/off-state drain-current characteristics, transconductance, and subthreshold characteristics. The virtual substrate does not require chemical-mechanical polishing and the same performance enhancement is achieved with and without a titanium salicide process.