A low-cost device for packaging LED dies provides superior reflectivity and thermal conductivity without covering entire surfaces of an LED luminaire with an expensive reflective aluminum substrate. The LED packaging device includes a highly reflective substrate disposed in a hole in a printed circuit board. The substrate has a reflectivity greater than 97% and includes an insulating layer and a reflective layer disposed above a thicker aluminum layer. An LED die is disposed on the top surface of the substrate. The PCB has a layer of glass fiber in resin and a metal layer. The lower surface of the PCB and the bottom surface of the substrate are substantially coplanar. The metal layer of the PCB is electrically coupled to the LED die only through bond wires. Electronic circuitry is disposed on the upper surface of the PCB and is used to control light emitted from the LED die.