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An AlGaN/GaN lateral field-effect rectifier with intrinsic ON-state current limiting capability is demonstrated by adding a Schottky contact metal (length of LD) beyond the ohmic contact region at the cathode electrode. The onset of the current limiting function is self-activated when the voltage drop across the two-dimensional gas (2DEG) channel under the Schottky contact reaches the pinch-off voltage of the as-grown AlGaN/GaN heterojunction. With LD = 2 ??m and a drift region length of 7 ??m, the proposed lateral rectifier exhibited an ON-state current that was self-limited at 1.56 kA/cm2, while achieving a reverse breakdown voltage of 347 V at a lmA/mm leakage current.