A method of making a semiconductor device begins with a semiconductor wafer that includes a first semiconductor layer overlying a second semiconductor layer. A first trench is etched in the semiconductor wafer. The first trench is filled with insulating material. A second trench is etched within the first trench and through the insulating material, such that insulating material remains along sidewalls of the first trench. The second trench exposes a portion of the second insulating layer. A semiconductor layer can then be grown within the second trench using the second semiconductor layer as a seed layer.