A phase shifting optical device and method of manufacture is provided. In an embodiment, the phase shifting optical device may include a first arm defining a first arm optical path, a second arm defining a second arm optical path, a beam splitter for splitting an input optical beam into first and second sub-beams for propagating in the first and second arm optical paths, respectively, and a beam combiner for combining the first and second sub-beams propagated in the first and second arm optical paths, respectively, into an output optical beam. The first arm including a carrier modification element to induce a phase shift in the first arm optical path relative to the second arm optical path. A cladding may be provided proximate to the first arm, the cladding having a temperature coefficient of refractive index (dn/dT)cl opposite in sign to a temperature coefficient of refractive index (dn/dT)a of the first arm.