Slight etching of an AlGaN layer at ohmic contact was investigated to reduce contact resistance in AlGaN/GaN HEMTs in Ka‐band operation. In the etching process, etched depth was precisely controlled by ICP‐RIE system with a mixture of BCl3 and Cl2 gases. The relation between ohmic contact resistance and etched depth was examined to determine the optimum depth. It was found that a resistance at an etched depth of 5 nm was reduced to 44% of that in the case of the conventional process. This process was applied to fabrication of GaN HEMTs with a gate length of 0.2 μm, and Ka‐band power characteristics were measured. The linear gain of the device was 11.4 dB, the maximum power‐added efficiency was 45%, and the output power density was 5.1 W/mm, under the conditions of a frequency of 31 GHz, a drain bias of 24 V, and a class‐AB operation. The values are higher than those in the case of the conventional process by 0.5 dB for the linear gain, 2 points for the power‐added efficiency, and 11% for the output power. (© 2012 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)