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In this letter, we propose a novel SiGe channel heterostructure dynamic threshold metal oxide semiconductor (DTMOS) and demonstrate its superiority over conventional Si-DTMOS. The introduction of a SiGe layer for the channel is very effective for reducing the threshold voltage in spite of keeping impurity doping level at the body region. Therefore, a low threshold voltage and a large body effect factor can be achieved simultaneously. The SiGe HDTMOS with highly doped body exhibits two times higher transconductance, 1.4 times higher saturation current, and better short channel immunity than that of the control Si-DTMOS with lightly doped body of which threshold voltage is nearly the same.