A method of manufacturing a semiconductor device based on a SiC substrate involves forming an oxide layer on a Si-terminated face of the SiC substrate at an oxidation rate sufficiently high to achieve a near interface trap density below 5×1011 cm−2; and annealing the oxidized SiC substrate in a hydrogen-containing environment, to passivate deep traps formed in the oxide-forming step, thereby enabling manufacturing of a SiC-based MOSFET having improved inversion layer mobility and reduced threshold voltage. It has been found that the density of DTs increases while the density of NITs decreases when the Si-face of the SiC substrate is subject to rapid oxidation. The deep traps formed during the rapid oxidation can be passivated by hydrogen annealing, thus leading to a significantly decreased threshold voltage for a semiconductor device formed on the oxide.