A method of forming laterally distributed light emitting diodes (LEDs) is disclosed. A first buffer layer with a first type of conductivity is formed on a semiconductor substrate, and a dielectric layer is formed on the first buffer layer. The dielectric layer is patterned to form a first patterned space therein, followed by forming a first active layer in the first patterned space. The dielectric layer is then patterned to form a second patterned space therein, followed by forming a second active layer in the second patterned space. Second buffer layers with a second type of conductivity are then formed on the first active layer and the second active layer. Finally, electrodes are formed on the second buffer layers and on the first buffer layer.