The invention provides a light-emitting diode and a forming method thereof. The light-emitting diode comprises an extension chip, a second substrate, an insulting layer, a first electrode and a second electrode, wherein the extension chip is provided with a first substrate, a first conductive semiconductor layer, a luminous layer and a second conductive semiconductor layer; the second substrate bears the extension chip; the insulating layer is positioned on the second substrate, and is provided with a first part adjacent to one side of the extension chip and a second part adjacent to the other side of the extension chip; the first electrode is positioned on the first part of the insulating layer; the second electrode is positioned on the second part of the insulating layer; and the first electrode and the second electrode are electrically connected with the first conductive semiconductor layer and the second conductive semiconductor layer respectively.