A method of manufacturing a MOSFET semiconductor device comprises forming a gate electrode over a substrate and a gate oxide between the gate electrode and the substrate; forming source/drain extensions in the substrate; forming first and second sidewall spacers; implanting dopants within the substrate to form source/drain regions in the substrate adjacent to the sidewalls spacers; laser thermal annealing to activate the source/drain regions; depositing a layer of nickel over the source/drain regions; and annealing to form a nickel silicide layer disposed on the source/drain regions. The source/drain extensions and sidewall spacers are adjacent to the gate electrode. The source/drain extensions can have a depth of about 50 to 300 angstroms, and the source/drain regions can have a depth of about 400 to 1000 angstroms. The annealing is at temperatures from about 350 to 500° C.