A trench-gate field effect transistor includes trenches extending into a silicon region of a first conductivity type, and a gate electrodes in each trench. Body regions of second conductivity type extend over the silicon region between adjacent trenches. Each body region forms a first PN junction with the silicon region, and each body region includes a silicon-germanium layer of the second conductivity type laterally extending between adjacent trenches. Source regions of the first conductivity flank the trenches, and each source region forms a second PN junction with one of the body regions. Channel regions extend in the body regions along sidewalls of the trenches between the source regions and a bottom surface of the body regions. The silicon-germanium layers extend into corresponding channel regions to thereby reduce the channel resistance.