An SOI substrate and method for forming is described incorporating the steps of forming strained layers of Si and/or SiGe on a first substrate, forming a layer of Si and/or S.sub.i O.sub.2 over the strained layers, bonding a second substrate having an insulating layer on its upper surface to the top surface above the strained layers, and removing the first substrate. The invention overcomes the problem of forming strained Si and SiGe layers on insulating substrates.