Ge-rich Si1-xGex nanocrystals are formed by the selective oxidation of Si during the dry oxidation processing of an amorphous Si0.7Ge0.3 layer. The oxidation kinetics of the alloy film in the temperature ranges from 600 to 800 °C are well explained by the classical model proposed by Deal and Grove with the activation energies of the linear rate and parabolic rate regime of about 1.35 and 1.02 eV, respectively. As a result of the selective oxidation process, Ge-rich Si1-xGex nanocrystals are formed with the size of 5.6±1.7 nm and with the spatial density of 3.6×1011/cm2 at 600 °C. With an increase of the oxidation temperature to 700 and 800 °C, the size of the nanocrystal is increased to about 20 nm. The variation of size of the nanocrystals as a function of temperature is explained considering the solid phase crystallization of amorphous film, oxidation rate, and grain growth. © 2002 American Vacuum Society.