The invention provides an LED
chip capable of improving external
quantum efficiency. The LED
chip comprises a DBR layer, a substrate, a buffer layer, a first
semiconductor layer, an
active layer, a second
semiconductor layer, a transparent conductive layer, an N type
electrode and a P type
electrode, wherein the N type
electrode and the P type electrode are both aluminum-based reflection electrodes, and the
aluminum metal layer of the P type electrode is in direct contact with the transparent conductive layer to improve the
reflectivity of a reflection electrode and a
semiconductor interface.The invention further provides a preparation method of the LED
chip capable of improving the external
quantum efficiency. The method comprises the following steps: growing a complete LED structure epitaxial
wafer on a substrate, and
etching to form a
semiconductor structure with a step inclined plane; manufacturing a current
blocking layer and a transparent conductive layer comprising an AZO layer; preparing a P type electrode, an N type electrode and a
passivation layer, and performing back plating of a DBR layer; and preparing the
wafer into the LED chip device. According to the invention, the aluminum-based reflecting electrode is adopted, and the
insertion layer
metal between the P type electrode and the transparent conductive layer is canceled, so that the luminous efficiency of the LED chip is improved, and the external
quantum efficiency of the LED chip is improved.