A method of manufacture of an integrated circuit coupling system includes: forming a waveguide assembly, having a top clad over an open end of an optical core; forming a first photoresist having a base photoresist pattern shape with sloped photoresist sidewalls tapered down to expose a portion of the top clad; forming a recess having clad sidewalls from the portion of the top clad exposed by the base photoresist pattern shape, the clad sidewalls having a shape replicating a shape of the base photo resist pattern shape; and forming an optical vertical insertion area, from the clad sidewalls forming the recess, having a pocket trench, a horizontal step, and a mirror with a reflective material selectively applied to a section of the clad sidewalls and exposing the open end opposite to the mirror, the horizontal step between the mirror and the pocket trench.