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A numerical approach to simulate the intrinsic noise sources within transistors is described, and the impact of spatial correlation between local fluctuations is investigated. Using a 2-D numerical device solver, spectral densities for the gate and drain noise current sources and their correlation are evaluated using a Green's function approach, which is an equivalent of Shockley's impedance field method. Case studies with an AlGaN/GaN high electron mobility transistor are supported by measurement data. Using a spatial noise source correlation model, similar terminal noise is found to the case of an uncorrelated diffusion noise source. Therefore, using uncorrelated local noise sources to calculate the intrinsic terminal noise is found to be valid even for the submicrometer gate length field-effect transistor studied.