A device and method for inducing stress in a semiconductor layer includes providing a substrate having a dielectric layer formed between a first semiconductor layer and a second semiconductor layer. A removable buried layer is provided on or in the second semiconductor layer. A gate structure with side spacers is formed on the first semiconductor layer. Recesses are formed down to the removable buried layer in areas for source and drain regions. The removable buried layer is etched away to form an undercut below the dielectric layer below the gate structure. A stressor layer is formed in the undercut, and source and drain regions are formed.