An LED illumination source comprises a heat dissipating substrate which includes a metal plate and at least two insulating layers thereon. LEI) bare chips are mounted on a surface of the substrate. An optical reflector with holes surrounds the LED bare chips. The optical reflector is provided on the surface of the substrate on which the LED bare chips are mounted. A resin encapsulates the entire optical reflector on the substrate, the resin molding each of the LED bare chips and functioning as an optical lens for each of the LED bare chips.