This paper has proposed the new progress of optical interconnections is processed, taking into account the following items such as its ultimate device bandwidth, its available transmission bit rates based on either soliton or maximum time division multiplexing (MTDM) transmission techniques, its ultimate transmission link bandwidth, and the product of the link bandwidth and its transmission length. Two items of special emphasis in the basic design of optical interconnection are: aluminum gallium arsenide (AlGaAs) and Barium Fluoride (BaF2) waveguides, and the optical source cast as Vertical Cavity Surface Emitting Laser Diodes (VCSELD), made of either AlGaAs at operating wavelength of 0.85 µm or indium gallium arsenide phosphors (InGaAsP) at operating wavelength of 0.65 µm , special emphasis is focused on the both above two items under different operating conditions including both the thermal and electrical effects. The optical interconnect is built up on the bases of two VCSELD and one optical link where thermal effects of both diodes and links are included. The good performance of the optical interconnect is deeply and parametrically investigated under wide ranges of the affecting parameters. The high speed performance is processed through three different effects, namely the device 3-dB bandwidth, and the link dispersion characteristics.