A method of forming a strained semiconductor channel, comprising: forming a relaxed SiGe layer on a semiconductor substrate; forming a dielectric layer on the relaxed SiGe layer and forming a sacrificial gate on the dielectric layer, wherein the dielectric layer and the sacrificial gate form a sacrificial gate structure; depositing an interlayer dielectric layer, which is planarized to expose the sacrificial gate; etching to remove the sacrificial gate and the dielectric layer to form an opening; forming a semiconductor epitaxial layer by selective semiconductor epitaxial growth in the opening; depositing a high-K dielectric layer and a metal layer; and removing the high-K dielectric layer and metal layer covering the interlayer dielectric layer by planarizing the deposited metal layer and high-K dielectric layer to form a metal gate. A semiconductor device manufactured by this process is also provided.