A method of manufacturing a hybrid substrate is disclosed, which comprises: bonding a first semiconductor substrate to a first combined substrate via at least one layer of dielectric material to form a second combined substrate, the first combined substrate includes a layer of III-V compound semiconductor and a second semiconductor substrate, the layer of III-V compound semiconductor arranged intermediate the layer of dielectric material and second semiconductor substrate; removing the second semiconductor substrate from the second combined substrate to expose at least a portion of the layer of III-V compound semiconductor to obtain a third combined substrate; and annealing the third combined substrate at a temperature about 250 C. to 1000 C. to reduce threading dislocation density of the layer of III-V compound semiconductor to obtain the hybrid substrate.