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We report inverted-type In0.51Al0.49As/In0.53Ga0.47As MOSHEMTs heteroepitaxially grown on GaAs substrates by metal-organic chemical vapor deposition. High 2-D electron gas Hall mobility values of 8200 cm2/V · s at 300 K and 33 900 cm2/V · s at 77 K have been achieved. The buried quantum-well channel design is combined with selectively regrown source/drain (S/D) using a gate-last process. A 120-nm-channel-length MOSHEMT exhibited a maximum drain current of 1884 mA/mm, peak transconductance of 1126 mS/mm at Vds = 0.5 V, and a subthreshold slope of 135 mV/dec at Vds = 0.05 V. With the regrown S/D, an ultralow on-state resistance of 156 Ω·μm was obtained.