Inclusive analysis on the optical characteristics of InGaAs/GaAs QW structure for 980 nm semiconductor laser operation is presented from experimental and theoretical point of view. The InGaAs/GaAs quantum well structure is grown by molecular beam epitaxy at different indium composition and quantum well thickness for optical characteristic comparison. Photoluminescence spectra from the measurement show that the spectrum is in good agreement with the simulation results. Detail simulation on the material gain for the InGaAs/GaAs quantum well as a function of carrier densities and operating temperature is also performed in order to optimize the semiconductor laser design for device fabrication.