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Lattice-matched InAlAs-InGaAs HEMTs with dry etched and wet etched gate recesses have been fabricated and both high-frequency and noise measurements have been carried out. The highly selective dry etching process ensures uniform device parameters. The small signal and noise performance shows only minor differences between the two transistor types. There is no evidence of detrimental effects caused by dry etching that reduce the electrical and noise performance of the device at high frequencies. These results show that dry etched InP HEMT's have suitable characteristics for the fabrication of MM-wave integrated circuits.