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We propose anti‐phase direct bonding and report on the first demonstration of its application to device fabrication. Cross‐sectional observation by high‐resolution transmission electron microscope showed that InP and GaAs wafers bonded at the atomic level and the misfit dislocations were localized at the bonding interface. Then InP‐based 1.55 μm wavelength lasers were fabricated on GaAs. The performance of the lasers was approximately equal to that of the lasers formed by in‐phase direct bonding. Moreover, stable operation was possible for more than 1000 h at 50 °C. © 1995 American Institute of Physics.