The invention discloses a high-heat radiation LED chip and a manufacturing method thereof. Through depositing a layer of a transparent heat conducting film on the surface of the LED chip, the heat conduction ability on the surface of the chip can be enhanced, the temperature of the chip is reduced, and uniformity of the temperature field on the surface of the chip can be improved. The transparent heat conducting film selects ZrO2 and Ag coating material. A physical vapor deposition method is adopted, a combination structure of a ZrO2 film layer, a Ag film layer and a ZrO2 film layer is sequentially grown on the substrate of the LED chip. The transparent heat conducting function on the surface of the chip can be realized with the combination film layer. Thus, the temperature of the LED chip can be effectively reduced, aging of the chip is delayed, temperature field gradient on the surface of the chip can be reduced, and light-emitting consistency of the surface of the chip can be improved.