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The electrical performance of AlGaN/InGaN/GaN heterostructure field effect transistors (HFETs) with and without an InGaN channel layer is studied. Four structures with InGaN carrier confinement layers of 0, 100, 300 and 500 Å thickness were deposited. The channel of InGaN layer was found to enhance the sheet concentration. The gate length is 1 μm. The Al0.32Ga0.68N/In0.1Ga0.9N/GaN HFET device with a 500 Å InGaN channel layer has maximum drain current (518 mA/mm) and maximum intrinsic transconductance (167 mS/mm).