Method for forming high performance strained source-drain structure and semiconductor device

A method for forming a high performance strained source-drain structure includes forming a gate structure on a substrate and forming a pocket implant region proximate to the gate structure. Spacers are formed adjacent to the gate structure. A dry etch forms a recess with a first contour; a wet etch enlarge the recess to a second contour; and a thermal etch enlarges the recess to a third contour. The source-drain structure is then formed in the recess having the third contour.