Effect of fluoride‐based plasma treatment on performance stability of AlGaN/GaN HFET was systematically investigated. The plasma‐based processes can introduce different type of damage that can be permanent or temporary, depending on electrical field in the device, plasma density, and energy of radicals and total process thermal budget. In order to understand more clearly the mechanism of fluorine based plasma treatment on device performance, we compare the effects of Ar, O2 and CF4 based plasma treatments applied before gate definition. Ar plasma was chosen for comparison with CF4 because of high ionization rate of Ar and chemically neutral behavior of Ar ions. Under the same medium range of 40 V DC bias in RIE system for these two gases, the shift of drain current and threshold voltage was similar that indicate the common mechanism of plasma damage. We supposed that the major effect for this phenomenon is a negative electron charge inserted in semiconductor during plasma treatment, because at the same accelerated field the penetration depth for electrons is higher than the penetration depth for fluoride ions. Devices stressed under impact ionization conditions show an improvement of breakdown voltage (for O2 plasma treatment) and some recovery of threshold voltage similar to “walkout effect”. This performance non‐stability raise the serious concern about application of fluorine based technology for power applications, where large voltage/current swing may push device to the impact ionization region. The experimental results show that the implementation of fluoride based plasma treatment for power device manufacturing can affect the performance stability of AlGaN/GaN power HFET. (© 2008 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)