According to various embodiments, a method of processing a substrate may include: forming a plurality of trenches into a substrate between two chip structures in the substrate, the trenches defining at least one pillar between the two chip structures and a sidewall on each of said two chip structures; disposing an auxiliary carrier on the substrate to hold the chip structures and the at least one pillar; at least partially filling the trenches with encapsulation material to cover the at least one pillar and the sidewalls, thereby at least partially encapsulating the chip structures; removing a portion of the encapsulation material to expose at least a portion of the at least one pillar; and at least partially removing the at least one pillar.