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We report low microwave noise performance of discrete AlGaN-GaN HEMTs at DC power dissipation comparable to that of GaAs-based low-noise FETs. At 1-V source-drain (SD) bias and DC power dissipation of 97 mW/mm, minimum noise figures (NF/sub min/) of 0.75 dB at 10 GHz and 1.5 dB at 20 GHz were achieved, respectively. A device breakdown voltage of 40 V was observed. Both the low microwave noise performance at small DC power level and high breakdown voltage was obtained with a shorter SD spacing of 1.5 /spl mu/m in 0.15-/spl mu/m gate length GaN HEMTs. By comparison, NF/sub min/ with 2 /spl mu/m SD spacing was 0.2 dB greater at 10 GHz.