An epitaxy structure with asymmetric hetero-structure waveguide for diode laser is presented, which was optimized by selecting material system and thickness of each layer. The different designs in P-confinement and N-confinement reduce voltage loss and meet the requirement of high power and high electro-optical efficiency. Based on the theory of transportation and confinement, the principal output characteristics were analyzed and simulated. After that, a 1060 nm diode laser with single quantum well and asymmetric hetero-structure waveguide was fabricated and characterized. The measurement results show that asymmetric hetero-structure waveguide is effective to reduce voltage loss and improve the confinement of injection carriers and electro-optical efficiency.