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A new high-power high-efficiency 1.3 μm surface-emitting InGaAsP/InP LED has been obtained by utilising a reverse-biased InP homojunction to achieve efficient confinement of injected current into the InGaAsP emitting area. The devices are grown by a two-step LPE process. At 20 mA, output powers ≫400 μW are obtained; over 1.5 mW is obtained at 100 mA. A 3 dB modulation frequency ≫60 MHz is obtained at 115 mA.