Optical transceiver and manufacturing method thereof

A method, comprising:

• removing a wall structure from a dummy die to separate the dummy die into a dummy portion and a dam portion;
• removing the dummy portion to expose a groove within a first semiconductor die;
• and
• placing a optical fiber within the groove, wherein the first semiconductor die connects the optical fiber to a second semiconductor die bonded to the first semiconductor die, the first semiconductor die being separated from the dam portion by an encapsulant.

A method, comprising:

• bonding a dummy die over a first region of a first semiconductor die;
• bonding a second semiconductor die to a second region of the first semiconductor die;
• applying an encapsulant between the dummy die and the second semiconductor die;
• removing a portion of the dummy die while leaving behind a dam portion of the dummy die;
• and
• placing a optical fiber into a groove located within the first region of the first semiconductor die.