Simulation of light propagation within nematic liquid-crystal (LC) devices is considered, of which the director is aligned normal to the z axis. A three-dimensional full-vector finite-difference beam propagation method for an anisotropic medium is presented and an alternating direction implicit scheme is adopted. Simulations of light propagation in a bulk polarization converter, a waveguide with a LC covering layer, and an integrated polarization splitter and optical switch are presented. Comparison with an existing simulation method is carried out for beam behavior within the bulk polarization converter. The effect of strong surface anchoring of a LC cell on the beam behaviors within the integrated switch is also demonstrated.
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