Abstract form only given. As a future lighting source, high power LED lighting is significant in that it provides decades of lifetime under normal operation, requiring a fraction of the power required for traditional lighting solutions. For LED lighting to be a viable lighting source, there are many technical challenges to be resolved. Among them the light extraction efficiency, the chip over heating, the thermal and radiation degradation of the optical output power are the key issues, which turn out are all related to the packaging materials. This work will outline those challenges in details and report the recent progress in resolving those key problems