This paper reports a novel strained N-channel transistor structure with sub-100 nm gate lengths. The strained N-MOSFET features silicon-carbon (SiC) source and drain (S/D) regions formed by a Si recess etch and a selective epitaxy of SiC in the S/D regions. The carbon mole fraction incorporated is 1.3%. Lattice mismatch of /spl sim/0.65% between SiC and Si results in horizontal tensile strain and vertical compressive strain in the Si channel region, both contributing to substantial electron mobility enhancement. The conduction band offset /spl Delta/E/sub c/ between the SiC source and the strained-Si channel also contributes to increased electron injection velocity from the source. Implementation of the SiC stressors provides significant drive current I/sub DS/ enhancement in the N-MOSFETs. I/sub DS/ enhancement of 50% was observed for a gate length of 50 nm.