We present a high phase-shift efficiency Mach-Zehnder silicon optical modulator based on the carrier-depletion effect in a highly-doped PN diode with a small waveguide cross-sectional area. The fabricated modulator show a V(pi)L(pi) of 1.8 V x cm and phase shifter loss of 4.4 dB/mm. A device using a 750 microm-long phase-shifter exhibits an eye opening at 12.5 Gbps with an extinction ratio of 3 dB. Also, an extinction ratio of 7 dB is achieved at 4 Gbps for a device with a 2 mm-long phase shifter. Further enhancement of the extinction ratio at higher operating speed can be achieved using a travelling-wave electrode design and the optimal doping.