In present dissertation, field-driven quantum well (QW) device is proposed to obtain high-speed and high-efficiency all-optical wavelength converter (AOWC). A new type QW material, InGaAsP/InGaAlAs, is employed to improve not only quantum confined Stark effect, but also carrier life time during high electric field excitation. The bandwidth as well as efficiency can be enhanced. Thus, the slow gain recovery mechanism (~100ps) from conventional semiconductor optical amplifier (SOA)-based AOWC can be overcome. The dispersion- and efficient- limited fiber-based AOWC (~10ps) can also be avoided. -3dB frequency bandwidth exceeding 40GHz for both electrical-to-optical and photocurrent response has been observed from InGaAsP/InGaAlAs waveguide of AOWC, leading to above 40GHz bandwidth in optical-to-optical response. A 40 Gb/s measurement setup is finally used for testing eye-diagram and bit-error-ratio in order to verify the data transmission of AOWC. Low power penalty with 0.5 dB comparing with back-to-back system performance is measured, suggesting InGaAsP /InGaAlAs waveguide is applicable to all-optical processing. By exciting short optical pump pulse in such waveguide, as short as 6.4ps probe pulse is observed, breaking through 10ps order in conventional type of QW and thus indicating the plausibility of performing 100Gb/s all optical processing.