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The invention is a magnetically active semiconductor (MaSC) waveguide, which enables the monolithic integration of optical isolators and circulators with semiconductor optoelectronic devices. By using select atoms and particles, the magneto-optical activity of the semiconductor is enhanced while the optical loss is reduced, thereby enabling the fabrication of novel semiconductor waveguide devices. The MaSC alloys can be fabricated in a range of bandgap energies and refractive indices so that the resulting waveguides can guide beams of light for an extended period of time. Guiding light close to magnetically doped semiconductor alloys can dramatically enhance the alloy’s polarization rotation, thereby leading to the development of fully integrated isolators and circulators.