We propose novel all-optical guided-wave devices using the structure with localized third-order optical nonlinearity where only a selected part of a waveguide both in a cross section and along a propagation direction is made from a Kerr-like nonlinear material and the rest are made from linear ones. Optical bistable devices and all-optical switching devices are realizable by utilizing bistable like nonlinear dispersion characteristics in selectively nonlinear guided-wave systems. Optical bistability and all-optical switching characteristics are analyzed in waveguide Y-junctions adopted the scheme by using a modified BPM combined with the normal mode analysis. The method to realize the guided-wave structure with localized nonlinearity is also discussed.
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