This paper describes a new precision bonding technique for semiconductor laser diodes. Since the parts to be bonded are heated to over 300-degrees-C, it is usually very difficult to hold them together with an accuracy of 1 mum. We have developed a precise position sensing mechanism that confirms the position of the laser and the substrate with an accuracy of 0.05 mum. We have also developed stable mechanisms to fix the laser and the substrate, whose relative heat distortion rates are less than 0.1 mum/min, during heating. These machanisms enable the system to bond a laser with a placement resolution of the order of 0.5 mum. These techniques are applied to the fabrication of an optical floating head, and a laser diode precisely bonded to a slider is shown to have good read and write characteristics.