Optical interferometry is a well established technique for high resolution displacement measurements. It is commonly used in the semiconductor industry as a sub-system of manufacturing and metrology tools. As the industry progresses, the tools continue to evolve, requiring the concomitant reduction of size and cost in sensors. Existing interferometric systems are bulky and therefore difficult to incorporate in equipment. Efforts are ongoing to miniaturize these systems but with optical components (beam splitters, detectors and lasers) still in the millimeter range, it is difficult to realize ultra compact systems. Thus, it is imperative to focus on development of micron scale components that would provide the necessary high spatial resolution in a compact format.The focus of this paper is on the development of a micron size optical component that combines multiple optical elements and can be integrated with VCSELs at the wafer level to yield a compact, low cost interferometric system. The design and development of this component containing the beam splitter and reference mirror will be presented including the investigation of suitable polymeric materials with desirable optical properties and appropriate fabrication techniques. Preliminary optical measurements of the integrated system will also be demonstrated. This approach has the potential to impact the next generation of micron scale interferometers as precise position/proximity sensors.Optical interferometry is a commericially available technique for precision positioning systems in a variety of applications within the micro-device manufacturing field. These systems provide high resolution alignment for both manufacturing 1 and metrology tools 2 . Researchers are investigating a number of interferometeric techniques, including fixed frequency and heterodyne, to address the continued need for more accurate measurements 3 . As semiconductor devices evolve, manufacturing and metrology systems increase in both cost and complexity to meet the challenges of the industry. To meet the needs of industry, tool manufactures must reduce cost while building sophisticated equipment, both of which can be achieved by reducing sub-system size and incorporating lower cost parts.A number of researchers have developed polymer optical components as an alternative to the commercially available products. These polymers are particularly advantageous because their mechanical and thermal properties can be controlled and components can be fabricated using simplified techniques producing less expensive but superior components 4 . Additionally, these components can be integrated with light sources and detectors into compact subsystems 5 . Researchers are investigating a number of techniques to fabricate high quality components, ranging from direct lithography 6 to replication molding 5 . This paper discusses the work on the fabrication of a novel optical component for an interferometric system. The optical component combines the beam splitter and reference mirror into a monolithi...