We have successfully demonstrated high-performance p-MOSFETs in germanium grown directly on Si using a novel heteroepitaxial growth technique, which uses multisteps of hydrogen annealing and growth to confine misfit dislocations near the Ge-Si interface, thus not threading to the surface as expected in this 4.2% lattice-mismatched system. We used a low thermal budget process with silicon dioxide on germanium oxynitride (GeO/sub x/N/sub y/) gate dielectric and Si/sub 0.75/Ge/sub 0.25/ gate electrode. Characterization of the device using cross-sectional transmission electron microscopy and atomic force microscopy at different stages of the fabrication illustrates device-quality interfaces that yielded hole effective mobility as high as 250 cm/sup 2//Vs.