The present invention discloses a vertical AC LED element and fabrication method thereof, wherein the vertical AC LED element comprises a conductive substrate (102); a light-emitting module on the conductive substrate (102), including two horizontally arranged in parallel and mutually-isolated LEDs; wherein the first and second LEDs include a first semiconductor layer (111), a light-emitting layer (112) and a second semiconductor layer (113) from top down; a first insulating layer (131) is arranged between the second semiconductor layer (113) of the first LED and the conductive substrate (102) for mutual isolation; an ohmic contact is formed between the second semiconductor layer (113) of the second LED and the conductive substrate (102); a first conductive structure that connects the first semiconductor layer (111) of the first LED, the second semiconductor layer (113) of the second LED and the conductive substrate (102); and a second conductive structure that connects the second semiconductor layer (113) of the first LED and the first semiconductor layer (111) of the second LED.