We report on the design and performance optimization of a quantum-well active region-based semiconductor optical amplifier Mach-Zehnder interferometer wavelength converter monolithically integrated with a widely tunable sampled-grating distributed Bragg reflector laser, operating differentially at 40 Gb/s. The device is fabricated using an offset quantum-well platform, requiring a single regrowth. We show error-free operation, with a less than 3-dB power penalty at the optimal differential delay, and open eyes across a 25-nm output tuning range.