The invention relates to a method of producing a substrate with a functional layer. The method comprises providing a workpiece having a first surface and a second surface opposite the first surface, and forming a modified layer inside the workpiece, the modified layer comprising a plurality of modified regions. Further, the method comprises, after forming the modified layer inside the workpiece, forming the functional layer on the first surface of the workpiece and, after forming the functional layer on the first surface of the workpiece, dividing the workpiece along the modified layer, thereby obtaining the substrate with the functional layer. Dividing the workpiece along the modified layer comprises applying an external stimulus to the workpiece. Moreover, the invention relates to a substrate producing system for performing this method.