A method of fabricating a waveguide device is disclosed. The method includes providing a substrate having an elector-interconnection region and a waveguide region and forming a patterned dielectric layer and a patterned redistribution layer (RDL) over the substrate in the electro-interconnection region. The method also includes bonding the patterned RDL to a vertical-cavity surface-emitting laser (VCSEL) through a bonding stack. A reflecting-mirror trench is formed in the substrate in the waveguide region, and a reflecting layer is formed over a reflecting-mirror region inside the waveguide region. The method further includes forming and patterning a bottom cladding layer in a wave-tunnel region inside the waveguide region and forming and patterning a core layer and a top cladding layer in the waveguide region.