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This paper describes a low-loss, compact, 40-channel arrayed waveguide grating (AWG) which utilizes a monolithically integrated spot-size converter (SSC) for lowering the coupling loss between silica waveguides and standard single-mode fibers. The SSC is a simple waveguide structure that is tapered in both the vertical and horizontal directions. The vertically tapered structure was realized using a shadow-mask etching technique. By employing this technique, the fabricated, 40-channel, 100 GHz-spaced AWG with silica waveguides of 1.5% relative index-contrast showed an insertion-loss figure of 2.8 dB without degrading other optical performance.