Three-dimensional memory device having epitaxial germanium-containing vertical channel and method of making thereof

An alternating stack of insulating layers and spacer material layers is formed over a semiconductor substrate. Memory openings are formed through the alternating stack. An optional silicon-containing epitaxial pedestal and a memory film are formed in each memory opening. After forming an opening through a bottom portion of the memory film within each memory opening, a germanium-containing semiconductor layer and a dielectric layer is formed in each memory opening. Employing the memory film and the dielectric layer as a crucible, a liquid phase epitaxy anneal is performed to convert the germanium-containing semiconductor layer into a germanium-containing epitaxial channel layer. A dielectric core and a drain region can be formed over the dielectric layer. The germanium-containing epitaxial channel layer is single crystalline, and can provide a higher charge carrier mobility than a polysilicon channel.