A semiconductor device includes a substrate having a first major surface; a semiconductor device structure over the first surface of the substrate, the device structure comprising an n-type semiconductor layer, and a p-type semiconductor layer over the n-type semiconductor layer; a p-side electrode having a first and a second surface, wherein the first surface is in electrical contact with the p-type semiconductor layer; and a p-side bonding pad over the p-side electrode. Preferably, the semiconductor device further comprises an n-side bonding pad over an n-type semiconductor layer. The p-side and n-side bonding pads each independently includes a gold layer as its top layer and a single or multiple layers of a diffusion barrier under the top gold layer. Optionally, one or more metal layers are further included under the diffusion barrier. Typically, the p-side bonding pad is formed on the p-side electrode. The n-side bonding pad typically is formed on the n-type semiconductor layer, and forms a good ohmic contact with the n-type semiconductor layer.