The article presents the study on the comparison of gain coefficient of laser diode on silicon and InP substrate. Fabry–Perot GaInAsP bulk laser diode on InP/Si substrate is successfully obtained to study the optical gain coefficient of laser diode. The influences of temperature, threshold current comparison, and optical gain achievements between bulk InP/Si laser diode substrate and InP laser diode substrate are also analyzed using the same growth structure. A new approach is found by the research group which involves bonding of 1 μm InP semiconductor crystal and a low‐cost silicon crystal prior to epitaxial laser structure growth. With the help of metal–organic vapor‐phase epitaxy technique, GaInAsP double‐heterostructure laser is epitaxially deposited on the well‐bonded InP/Si crystal. Fabry–Perot lasing under pulsed condition is achieved, and the lasing characteristics of InP/Si substrate are compared with that of InP laser device to study the gain coefficient.