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Defects in terms of voids, cracks, and delaminations are often generated in light-emitting diodes (LEDs) devices and modules. During various manufacturing processes, accelerated testing, inappropriate handling, and field applications, defects are most frequently induced in the early stage of process development. One loading is due to the nonuniform loads caused by temperature, moisture, and their gradients. In this research, defects in various cases are modeled by a nonlinear finite-element method (FEM) to investigate the existence of interfaces, interfacial open and contacts in terms of thermal contact resistance, stress force nonlinearity, and optical discontinuity, in order to analyze their effects on the LED's thermal and optical performance. The simulation results show that voids and delaminations in the die attachment would enhance the thermal resistance greatly and decrease the LED's light extraction efficiency, depending on the defects' sizes and locations generated in packaging.