A plasma-based etching process is used to specifically shape the endface of an optical substrate supporting an optical waveguide into a contoured facet which will improve coupling efficiency between the waveguide and a free space optical signal. The ability to use standard photolithographic techniques to pattern and etch the optical endface facet allows for virtually any desired facet geometry to be formed—and replicated across the surface of a wafer for the entire group of assemblies being fabricated. A lens may be etched into the endface using a properly-defined photolithographic mask, with the focal point of the lens selected with respect to the parameters of the optical waveguide and the propagating free space signal. Alternatively, an angled facet may be formed along the endface, with the angle sufficient to re-direct reflected/scattered signals away from the optical axis.