In this paper, we demonstrate all-optical header extraction and seed-pulse extraction for routing and synchronization of optical packets with pulse-position-coded headers. Our approach exploits self-induced effects in a passive, lowpower, polarization-independent, compact vertical cavity semiconductor gate (VCSG). The VCSG operation is based on saturable absorption in semiconductor multiple quantum wells placed within an asymmetric Fabry-Pérot cavity. Experiments were performed for both amplitude-modulated and differential-phase-shiftkeying-modulated payload data. The payload repetition rate was 12.5 Gbit/s. The packet-bit rate was not limited by the gate recovery time. The operation of the VCSG was also investigated numerically.Index Terms-Header extraction, optical signal processing, packet self-synchronization, packet switching, quantum-wells devices, saturable absorption.