A method includes etching a semiconductor substrate to form a trench and a semiconductor strip. A sidewall of the semiconductor strip is exposed to the trench. The method further includes depositing a silicon-containing layer extending into the trench, wherein the silicon-containing layer extends on the sidewall of the semiconductor strip, filling the trench with a dielectric material, wherein the dielectric material is on a sidewall of the silicon-containing layer, and oxidizing the silicon-containing layer to form a liner. The liner comprises oxidized silicon. The liner and the dielectric material form parts of an isolation region. The isolation region is recessed, so that a portion of the semiconductor strip protrudes higher than a top surface of the isolation region and forms a semiconductor fin.