A new device for the gigahertz modulation of far-infrared radiation is analytically and numerically analyzed. It consists of a thin layer of a high-mobility, direct-bandgap semiconductor, such as GaAs, in which a high-density electron-hole plasma is rapidly created and destroyed, thereby rapidly changing the free-carrier reflectivity of the active layer. Illumination by a high-power, near-infrared laser diode array generates the plasma through intrinsic photoconduction. It is shown that this device acis primarily as an amplitude modulator, and that its efficiency increases sharply with increasing far-IR frequency, in contrast to a Schottky diode, which acts primarily as a phase modulator, and whose efficiency falls off sharply with far-IR frequency. The breakeven frequency lies at about 1.5 THz, depending slightly on the assumed device parameters. The relative advantage of the new device increases rapidly with increasing far-infrared frequency. At an operating frequency of 2.5 THz (119 μm), for example, a 1 GHz modulation bandwidth may be achieved with a single-sideband conversion loss of only-21 db, versus a Schottky's loss of-39 db, assuming a laser diode power of 1 W, which is readily available from recently developed laser diode arrays.