After forming the outer drain and source regions of an N-channel transistor, the spacer structure may be removed on the basis of an appropriately designed etch stop layer so that a rigid material layer may be positioned more closely to the gate electrode, thereby enhancing the overall strain-inducing mechanism during a subsequent anneal process in the presence of the material layer and providing an enhanced stress memorization technique (SMT). In some illustrative embodiments, a selective SMT approach may be provided.