We present theoretical study of the response of two-dimensional gated electron gas to an amplitude modulated signals with carrier frequency in the terahertz range. The model is based on complete hydrodynamic equations, and includes effects of viscosity, pressure gradients and thermal transport in the conduction channel of a high electron mobility semiconductor transistor (HEMT). The modulation response was evaluated as a function of modulation frequency f(M) for a wide range of mobility values. Maximum modulation frequency f(MAX) was evaluated as a function of channel mobility, with typical values of f(MAX) in the subterahertz range of frequencies. Our analysis shows that short channel field effect transistors operating in the plasmonic regime can meet all the requirements for applications as terahertz detectors and modulators in ultra high-speed wireless communication circuits. Published by Elsevier Ltd.