Pulsed anodic oxidation technique, a new way of forming current blocking layers, was successfully used in ridge-waveguide QW laser fabrication. This method was applied in 980 nm VCSELs fabrication to form a high-quality native oxide current blocking layer, which simplifies the device process. A significant reduction of threshold current and a distinguished device performance are achieved. The 500 μm diameter device has a current threshold as low as 048 W. The maximum CW operation output power at room temperature is 1.48 W. The lateral divergence angle θ‖ and vertical divergence angle θ⊥ are as low as 15.3° and 13.8° without side-lobes at a current of 6 A.