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Novel vertical heterojunction field-effect transistors (VHFETs) with re-grown AlGaN/GaN two-dimensional electron gas (2DEG) channels on freestanding GaN substrates have been developed. The VHFETs exhibited a specific on-resistance (RonA) of 7.6 m Omega cm(2) at a threshold voltage (V(TH)) of -1: 1 V and a breakdown voltage (V(B)) of 672 V. The breakdown voltage and the figure of merit (V(B)(2)/R(on)A) are the highest among those of the GaN-based vertical transistors ever reported. It was demonstrated that the threshold voltage can be controlled by the thickness of AlGaN layers and a normally-off operation was achieved with a 10-nm-thick Al(0:2)Ga(0:8)N layer. (C) 2010 The Japan Society of Applied Physics