The implementation of Wavelength Division Multiplexing system (WDM) optical fibre transmission systems has the potential to realise this high capacity data rate exceeding 10 Tb/s. The ability to reconfigure optical networks is a desirable attribute for future metro applications where light paths can be set up or taken down dynamically as required in the network. The use of microelectronics in conjunction with photonics enables intelligence to be added to the high-speed capability of photonics, thus realising reconfigurable optical devices which can revolutionise optical telecommunications and many more application areas. In this thesis, we investigate and demonstrate the capability of Opto-VLSI processors to realise a reconfigurable WDM optical device of many functions, namely, optical multiband filtering, optical notch filtering, and reconfigurable-Optical-Add-Drop Multiplexing (ROADM). We review the potential technologies available for tunable WDM components, and discuss their advantages and disadvantages. We also develop a simple yet effective algorithm that optimises the performance of Opto-VLSI processors, and demonstrate experimentally the multi-function WDM devices employing Opto-VLSI processors. Finally, the feasibility of Opto-VLSI-based WDM devices in meeting the stringent requirements of the optical communications industry is discussed.