In this paper, thin film AlGaInP LED chips with a 50 μm thick composite metal substrate (Copper-Invar-Copper; CIC) were obtained by the wet etching process. The pattern of the substrate was done by the backside of the AlGaInP LED/CIC. There was no delamination or cracking phenomenon of the LED epilayer which often occurs by laser or mechanical dicing. The chip area was 1140 μm × 1140 μm and the channel length was 360 μm. The structure of the CIC substrate was a sandwich structure and consisted of Cu as the top and bottom layers, with a thickness of 10 μm, respectively. The middle layer was Invar with a 30% to 70% ratio of Ni and Fe and a total thickness of 30 μm. The chip pattern was successfully obtained by the wet etching process. Concerning the device performance after etching, high-performance LED/CIC chips were obtained. They had a low leakage current, high output power and a low red shift phenomenon as operated at a high injected current. After the development and fabrication of the copper-based composite substrate for N-side up thin-film AlGaInP LED/CIC chips could be diced by wet etching. The superiority of wet etching process for the AlGaInP LED/CIC chips is over that of chips obtained by mechanical or laser dicing.