The invention discloses an LED chip and a production method thereof. The LED chip comprises a substrate and an extension structure arranged on the substrate, wherein the extension structure is dividedinto a plurality of LED primitive cells; peripheral side walls of the extension structure are provided with a side wall groove, and the side wall groove is used for reducing the total emission of thelight in the LED primitive cells; a primitive cell groove is formed between two adjacent LED primitive cells, the substrate is exposed by virtue of the bottom of the primitive cell groove, and the primitive cell groove reduces the total emission of the light in the LED primitive cells as well as the leak current; an insulation layer is arranged in the primitive cell groove; and a connection electrode covers the insulation layer, and the connection electrode electrically connects two adjacent LED primitive cells. In the technical scheme of the invention, the total emission of the light in theLED primitive cells is reduced by virtue of the side wall groove, the total emission of the light in the LED primitive cells and the leak current can be reduced by virtue of the primitive cell groove,so that the light emitting efficiency can be improved, the current leakage rate is reduced, and the external quantum efficiency can be improved.