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In this letter, a novel heterojunction AlGaN/AlN/GaN high-electron mobility transistor (HEMT) is discussed. Contrary to normal HEMTs, the insertion of the very thin AlN interfacial layer (/spl sim/1 nm) maintains high mobility at high sheet charge densities by increasing the effective /spl Delta/E/sub C/ and decreasing alloy scattering. Devices based on this structure exhibited good DC and RF performance. A high peak current 1 A/mm at V/sub GS/=2 V was obtained and an output power density of 8.4 W/mm with a power added efficiency of 28% at 8 GHz was achieved.