This paper reviews recent progress in the integration and packaging of two-
dimensional (2-D) vertical-cavity surface-emitting laser (VCSEL) arrays bei
ng developed for the use in high-speed parallel optical interconnections. I
t reviews the smart integration of VCSEL's with detecting, switching and la
tching functions through the integration of a VCSEL-thyristor and double-ca
vity phototransistor, It also describes self-alignment-packaging technologi
es for 2-D VCSEL module that can be used in high-density parallel links. Va
rious system applications, such as a distributed fiber switch used to enabl
e crossbar interconnections with address switching functions and hyper-para
llel transmission using an image fiber, are also examined.