In the field of group-III nitrides, hetero-epitaxial growth has been one of the most important key technologies. A thick layer of AlGaN alloy with higher AlN molar fraction is difficult to grow on sapphire substrate, because the alloy layer is easily cracked. It is thought that one cause of generating cracks is a large lattice mismatch between an AlGaN and a GaN, when AlGaN is grown on the underlying GaN layer. We have achieved crack-free Al0.07Ga0.93N layer with the thickness of more than 1μm using underlying Al0.05Ga0.95N layer. The underlying Al0.05Ga0.95N layer was grown directly on sapphire by using the low-temperature-deposited buffer layer (LT-buffer layer). Since a lattice mismatch between the underlying Al0.05Ga0.95N layer and upper Al0.07Ga0.93N layer is relatively small, the generation of cracks is thought to be suppressed. This technology is applied to a GaN-based laser diode structure, in which thick n-Al0.07Ga0.93N cladding layer grown on the Al0.05Ga0.95N layer, improves optical confinement and single-robe far field pattern in vertical direction.