A semiconductor device formed on a strained silicon layer and a method of manufacturing such a semiconductor device are disclosed. In accordance with this invention, a first silicon germanium layer is formed on a single crystalline silicon substrate; a second silicon germanium layer is formed on the first silicon germanium layer, the second silicon germanium layer having a concentration of germanium in a range of about 1 percent by weight to about 15 percent by weight based on the total weight of the second silicon germanium layer; a strained silicon layer is formed on the second silicon germanium layer; an isolation layer is formed at a first portion of the strained silicon layer; a gate structure is formed on the strained silicon layer; and, source/drain regions are formed at second portions of the strained silicon layer adjacent to the gate structure to form a transistor.