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III-N material grown on a silicon substrate includes a single crystal rare earth oxide layer positioned on a silicon substrate. The rare earth oxide is substantially crystal lattice matched to the surface of the silicon substrate. A first layer of III-N material is positioned on the surface of the rare earth oxide layer. An inter-layer of aluminum nitride (AlN) is positioned on the surface of the first layer of III-N material and an additional layer of III-N material is positioned on the surface of the inter-layer of aluminum nitride. The inter-layer of aluminum nitride and the additional layer of III-N material are repeated n-times to reduce or engineer strain in a final III-N layer. A cap layer of AlN is grown on the final III-N layer and a III-N layer of material with one of an LED structure and an HEMT structure is grown on the AlN cap layer.