Abstract: An IR transceiver for use in low-power, low cost environments such as portable computers and hand-held calculators. The transceiver can transmit data at higher, selectable baud rates and at greater distances than previously possible. On the transmitting side the transceiver elements include a serial interface device, encoder circuitry and an IR transmitter with LEDS having fast turn-on and turn-off times. On the receiving side are decoder circuitry coupled to the serial interface device and an IR receiver designed specifically for a photo diode. A baud rate generator provided by the serial interface device sets the baud rate in the encoding and decoding circuitry. The receiver portion of the IR transceiver automatically sets itself to the baud rate of received data. Because of the baud rate selectability, the IR transceiver is compatible with prior IR transceivers that are limited to fixed baud rates.