High speed optical modulators can be made of a lateral PN diode formed in a silicon optical waveguide, disposed on a SOI or other silicon based substrate. A PN junction is formed at the boundary of the P and N doped regions. The depletion region at the PN junction overlaps with the center of a guided optical mode propagating through the waveguide. Electrically modulating a lateral PN diode causes a phase shift in an optical wave propagating through the waveguide. Each of the doped regions can have a stepped or gradient doping profile within it or several doped sections with different doping concentrations. Forming the doped regions of a PN diode modulator with stepped or gradient doping profiles can optimize the trade off between the series resistance of the PN diode and the optical loss in the center of the waveguide due to the presence of dopants.