An apparatus and method of integrating optics into an IC package is for detecting light from at least one light source is disclosed. The apparatus has a housing, which has a predetermined spectral transmittance. A sensor is positioned within the housing. An opaque mask is applied to the housing, where the opaque mask has a hole aligned with the sensor such that the light's centroid is detected by the sensor. In one embodiment, the apparatus further comprises a substrate for positioning and stabilizing the sensor in the housing, an analog filter and amplification module (“AFA”) for filtering and amplifying signals from the sensor and generating a second signal, and a digital signal processor (“DSP”) for generating a coordinate system by extracting frequency components from the AFA output signal.