A semiconductor substrate having a silicon layer is provided. In one embodiment, the substrate is a silicon-on-insulator (SOI) substrate having an oxide layer underlying the silicon layer. An amorphous or polycrystalline silicon germanium layer is formed overlying the silicon layer. Alternatively, germanium is implanted into a top portion of the silicon layer to form an amorphous silicon germanium layer. The silicon germanium layer is then oxidized to convert the silicon germanium layer into a silicon dioxide layer and to convert at least a portion of the silicon layer into germanium-rich silicon. The silicon dioxide layer is then removed prior to forming transistors using the germanium-rich silicon. In one embodiment, the germanium-rich silicon is selectively formed using a patterned masking layer over the silicon layer and under the silicon germanium layer. Alternatively, isolation regions may be used to define local regions of the substrate in which the germanium-rich silicon is formed.