A semiconductor substrate containing a single crystalline group IV semiconductor is provided. A single crystalline lattice mismatched group IV semiconductor alloy layer is epitaxially grown on a portion of the semiconductor layer, while another portion of the semiconductor layer is masked. The composition of the lattice mismatched group IV semiconductor alloy layer is tuned to substantially match the lattice constant of a single crystalline compound semiconductor layer, which is subsequently epitaxially grown on the single crystalline lattice mismatched group IV semiconductor alloy layer. Thus, a structure having both the group IV semiconductor layer and the single crystalline compound semiconductor layer is provided on the same semiconductor substrate. Group IV semiconductor devices, such as silicon devices, and compound semiconductor devices, such as GaAs devices having a laser emitting capability, may be formed on the on the same lithographic level of the semiconductor substrate.