DC and RF performances of AlGaN/GaN HEMTs are simulated using a two-dimensional device simulator with the material parameters of GaN and AlGaN. The cut-off frequency is estimated as 205 GHz at the gate length of 0.05 µm and the drain breakdown voltage at this gate length is over 10 V. The values are satisfactory for millimeter wavelength power applications. The use of thin AlGaN layers has key importance to alleviate gate parasitic capacitance effects at this gate length.