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We report here on the design, fabrication, and high-speed performance of a parallel optical transceiver based on a single CMOS amplifier chip incorporating 16 transmitter and 16 receiver channels. The optical interfaces to the chip are provided by 16-channel photodiode (PD) and VCSEL arrays that are directly flip-chip soldered to the CMOS IC. The substrate emitting/illuminated VCSEL/PD arrays operate at 985 nm and include integrated lenses. The complete transceivers are low-cost, low-profile, highly integrated assemblies that are compatible with conventional chip packaging technology such as direct flip-chip soldering to organic circuit boards. In addition, the packaging approach, dense hybrid integration, readily scales to higher channel counts, supporting future massively parallel optical data buses. All transmitter and receiver channels operate at speeds up to 15 Gb/s for an aggregate bidirectional data rate of 240 Gb/s. Interchannel crosstalk was extensively characterized and the dominant source was found to be between receiver channels, with a maximum sensitivity penalty of 1 dB measured at 10 Gb/s for a victim channel completely surrounded by active aggressor channels. The transceiver measures 3.25times5.25 mm and consumes 2.15 W of power with all channels fully operational. The per-bit power consumption is as low as 9 mW/Gb/s, and this is the first single-chip optical transceiver capable of channel rates in excess of 10 Gb/s. The area efficiency of 14 Gb/s/mm2 per link is the highest ever reported for any parallel optical transmitter, receiver, or transceiver reported to-date.