High-speed integrated circuits (ICs) are essential for expanding the capacity of lightwave communications. InP-based heterostructure field effect transistors (HFETs) and heterojunction bipolar transistors (HBTs) are very promising for producing high-speed digital and analog ICs. This paper reviews the current status of InP-based lightwave communication ICs in terms of device, circuit, and packaging technologies. A successful 40-Gbit/s, 300-km optical fiber transmission using InP HFET ICs demonstrates the feasibility of the ICs. Furthermore, we estimate future IC performance based on the relationship between electron device figures-of-merit and IC speed. To keep up with the performance trend, technological problems, like inter-and intra-chip interconnections, have to be solved. Int. J. Hi. Spe. Ele. Syst. 1998.09:567-593. Downloaded from www.worldscientific.com by UNIVERSITY OF QUEENSLAND on 02/03/15. For personal use only. Transmitter Receiver 2D.