In order to introduce optical fibers in the last one mile to the home, the realization of low cost photonic circuit is crucial. We propose a new concept of photonic circuit consisting of stacked multi-layers of diffractive optical elements. Wafer-scale alignment is expected to reduce fabrication cost of each photonic circuit. The first prototype demonstration of the photonic circuit is reviewed. The experimental results required further insertion loss improvement. To fulfill this need, we developed an optical CAD environment specifically targeted on telecommunication applications. The detail of the CAD environment as well as the second prototype experimental results are discussed.© (2001) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.