A high-efficiency light emitting diode including: a semiconductor stack positioned on a support substrate, including a p-type compound semiconductor layer, an active layer, and an n-type compound semiconductor layer; an insulating layer disposed in an opening that divides the p-type compound semiconductor layer and active layer; a transparent electrode layer disposed on the insulating layer and the p-type compound semiconductor layer; a reflective insulating layer covering the transparent electrode layer, to reflect light from the active layer away from the support substrate; a p-electrode covering the reflective insulating layer; and an n-electrode is formed on top of the n-type compound semiconductor layer. The p-electrode is electrically connected to the transparent electrode layer through the insulating layer.