Abstract The high-speed performance of the lump-type electroabsorption modulator (EAM) is mainly limited by RC-effect. By taking advantage of the distributive effects, the traveling-wave structure can overcome the RC-lump effect. However, in order to enhance the limitation imposed by the conventional slow-waveguide type of traveling-wave structure, the speed of the device is still mainly restricted by the distributed capacitance of the waveguide. In this work, a novel type of traveling-wave-electroabsorption-modulator based on the undercut-etching the active region is successfully fabricated and measured. The methods of the processing adopted here is to lower the capacitance by chemical-wet-etching and two-time subsequent undercut etching on active region to further decrease the parasitic capacitance between P-type and N-type cladding layer. Also, the optical scattering loss may be reduced due the smooth sidewall of the waveguide from the wet etching. The whole processing shown in this thesis includes the lift-off technique by lithography, the metalization for n-, p- contacts (by thermal evaporator) and CPW microwave transmission (by e-beam evaporator), and PMGI-planarization. ¡V15dB optical transmission, ¡V6dB electrical transmission loss and >20GHz 3dB bandwidth of electrical-to-optical response at 50£[termination is measured on this kind of devices. It exhibits a high potential on the application of high-speed optical-fiber link in the future.