980-nm substrate-emitting oxidized-aperture verticalcavity surface-emitting lasers (VCSELs) with threshold currents in the 150 µA to 500 µA range have been developed for optoelectronic interconnects. 8 x 8 VCSEL arrays with 125 µm pitch have been flip-chip bonded to CMOS driver circuitry of 0.5-µm gate size. InGaAs/InP 8 x 8 detector arrays have been flip-chip bonded to provide good responsivity and high speed detection in dense arrays with 125-µm pitch. Data rates as high as 1.1 Gb/s have been demonstrated with the incorporation of refractive coupling optics between transmitter and receiver arrays. Studies have been conducted of crosstalk and alignment sensitivity of these optoelectronic interconnect arrays. Design and modeling techniques have been demonstrated for the development of diffractive optics for optoelectronic interconnects. Special techniques have been developed to deal with very short working distances and subwavelength features in the diffractive optics. Fan-out performance up to 7 x 7 with accurately controlled intensity weights has been demonstrated with diffractive optics .The use of diffractive optics in opoelectronic interconnects with fan-out and/or fan-in can make the interconnect an integral part of the optoelectronic processing algorithm.