Now the process technique of light emitting diode (LED) is continued to leap forward, however heat dispassion is still unresolved. Therefore, the life-time and output efficiency of LED is serious because of the accumulated heat. In this thesis, we have resolved the heat problem in package level. The package components of LED are heat sink, lead frame, joint material in the interface between LED chip and reflective cup, and the body of chip. Conventional joint material between LED chip and reflective cup is gel, with high thermal resistivity, consisted of organic material with/without metal particle. We have proposed a new technique to overcome the thermal problem by embedding the LED chip in metal heat sink directly. Optical and electrical characteristics of LED have improved by this new technique obviously.