A HEMT‐compatible power lateral field effect rectifier (L‐FER) is reported and fabricated using the CF4 plasma treatment on a GaN‐on‐Si wafer. The power rectifier features a Schottky‐gate‐controlled two‐dimensional electron gas (2DEG) channel between the cathode and anode. By tying up the Schottky gate and anode together, the forward turn‐on voltage (VF, ON) of the rectifier is determined by the threshold voltage of the channel instead of the Schottky barrier. The L‐FER with a drift length of 15 μm features a VF, ON of 0.78 V at a current density of 100 A/cm2. This device also exhibits a reverse breakdown voltage (BV) of 460 V at a current level of 1mA/mm and a specific on‐resistance (RON, sp) of 2.3 mΩ·cm2, yielding a figure‐of‐merit (BV2/RON, sp) of 92 MW/cm2. The high temperature characteristics of the L‐FER are also investigated. The measurement results show a robust high temperature operation up to 250 °C. The excellent device performances, together with the lateral device structure and process compatibility with AlGaN/GaN HEMT, provide a low‐cost solution for GaN power integrated circuits. (© 2009 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)