Abstract. Efficiency determines the profits of the semiconductor producers. So the producers spare no effort to enhance the efficiency of every procedure. The purpose of the paper is to present a method to shorten the time to locate the LED chips on wafer. The method consists of 3 steps. Firstly, image segmentation and blob analyzation are used to predict the positions of potential chips. Then predict the orientations of potential chips based on their dominant orientations. Finally, according to the positions and orientations predicted above, locate the chips precisely based on gradient orientation features. Experiments show that the algorithm is faster than the traditional method we choose to locate the LED chips. Besides, even the orientations of the chips on wafer are of big deviation to the orientation of the template, the efficiency of this method won't be affected.