Embedded LED chip preparation method and embedded LED chip

The invention provides an embedded LED chip preparation method and an embedded LED chip, the preparation method comprises the steps that an epitaxial layer, a metal reflector layer and a protective layer are deposited on the surface of a first substrate, the epitaxial layer comprises a buffer layer, an N-type GaN layer, a light-emitting layer and a P-type GaN layer which are deposited in sequence, a first chip is etched to the N-type GaN layer, and the etching gas atmosphere is Cl2amp; r1, R2, R3, R4, R5, R6, BCl3 and R1, R2, Ar, Cl2amp; obtaining a plurality of N electrode holes by using one of three mixed gases of N2 and N2, and growing N electrodes in the N electrode holes; bonding a second substrate on the surface of the N electrode, and stripping the first substrate to obtain a second chip; and corroding the second chip to the metal reflector layer, growing a second insulating layer on the side wall of the groove and the surface of the N-type GaN layer after corrosion, and growing and preparing a P elect