The present invention provides a SiP structure and method for a light emitting diode (LED) chip. The packaging structure includes: a heat sink structure, a first chip, a first packaging layer, a second packaging layer, a rewiring layer, an LED chip, a printed circuit board (PCB), and a third packaging layer. In the present invention, chips with a plurality of functions, including the first chip, the LED chip, and the like, are integrated into one packaging structure through fan-out system-level packaging, to meet a plurality of different system functional requirements and improve the performance of the packaging system. By the rewiring layer, a metal connecting pillar, a metal lead wire, and the like, the first chip, the LED chip, and the PCB are electrically connected, to achieve a three-dimensional vertically stacked package thereby effectively reducing the area of a SiP and improving the integration of the packaging system.