Wire bonding is one of the main processes used to connect the signal of light emitting diode (LED) chips. Failures, such as pad peeling, cracking, and delamination, affect the development of LED, and some of these failures are influenced by the wire bonding process. This research aims to construct an effective simulation methodology for the impact stage of the wire bonding process.An effective simulation methodology utilizing the explicit method with a second level accuracy arbitrary Lagrangian-Eulerian (ALE) algorithm is successfully achieved. Only a 0.5% discrepancy in ball height between this model and the actual wire bonding sample is observed after the impact stage, and the geometry of the bonded wire is similar to that of the actual wire. The finite element (FE) model established in this research not only conquers the element distortion problem, but proposes an effective methodology for simulating the wire bonding process in the future.