In this study, the potential of employing SiNx (silicon nitride) waveguide platforms to enable the use of liquid-crystal-based phase shifters for on-chip optical modulators was thoroughly investigated using 3D-FDTD (3D finite-difference time-domain) simulations. The entire structure of liquid-crystal-based Mach–Zehnder interferometer (MZI) optical modulators, consisting of multi-mode interferometer splitters, different tapering sections, and liquid-crystal-based phase shifters, was systematically and holistically investigated with a view to developing a compact, wideband, and CMOS-compatible (complementary metal-oxide semiconductor) bias voltage optical modulator with competitive modulation efficiency, good fabrication tolerance, and single-mode operation using the same SiNx waveguide layer for the entire device. The trade-off between several important parameters is critically discussed in order to reach a conclusion on the possible optimized parameter sets. Contrary to previous demonstrations, this investigation focused on the potential of achieving such an optical device using the same SiNx waveguide layer for the entire device, including both the passive and active regions. Significantly, we show that it is necessary to carefully select the phase shifter length of the LC-based (liquid crystal) MZI optical modulator, as the phase shifter length required to obtain a π phase shift could be as low as a few tens of microns; therefore, a phase shifter length that is too long can contradictorily worsen the optical modulation.