A method of manufacturing an LED forms an InGaN active layer on a substrate. A p-side electrode is formed on the InGaN active layer to supply an electric current to this InGaN active layer. The p-side electrode includes a nickel layer for forming an ohmic contact with a p-GaN layer, a molybdenum having a barrier function of preventing diffusion of impurities, an aluminum layer as a high-reflection electrode, a titanium layer having a barrier function, and a gold layer for improving the contact with a submount on a lead frame. Forming a p-side electrode with this five-layered structure realizes an ohmic contact and high reflectance at the same time.