The invention describes a method of manufacturing an LED carrier assembly, which method comprises the steps of providing a carrier comprising a mounting surface with mounting pads arranged to receive a number of LED dies; embedding an alignment magnet in the carrier; providing a number of LED dies, wherein an LED die comprises a number of magnetic die pads; and aligning the magnetic die pads to the mounting pads by arranging the LED dies over the mounting surface of the carrier within magnetic range of the alignment magnet. The invention also describes an LED carrier assembly.