Transistors fabricated on SSOI (Strained Silicon On Insulator) substrate, which comprises a strained silicon layer disposed directly on an insulator layer, have enhanced device performance due to the strain-induced band modification of the strained silicon device channel and the limited silicon volume because of the insulator layer. The present invention discloses a SSOI substrate fabrication process comprising various novel approaches. One is the use of a thin relaxed SiGe layer as the strain-induced seed layer to facilitate integration and reduce processing cost. Another is the formation of split implant microcracks deep in the silicon substrate to reduce the number of threading dislocations reaching the strained silicon layer. And lastly is the two step annealing/thinning process for the strained silicon/SiGe multilayer film transfer without blister or flaking formation.