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Recent developments in both GaAs- and InP-based opto-electronic circuits (OEIC's) which incorporate both optoelectronic and electronic devices on the same semiconductor substrates will be discussed. Several key technologies required for optoelectronic integration and the present status of the technology are explained by reviewing some of OEIC transmitters and receivers that have been realized up to now. Possibilities of application of OEIC's and further technological challenges to enhance the advantages of OEIC's are discussed.