Using Si substrates is the sole route towards III‐nitrides process on large wafer diameter: flat, crack‐free HEMT epiwafers have been grown by MOVPE with diameter up to 150 mm, exhibiting very low sheet resistivity (260 Ω/sq.) and high uniformity (<2%), thanks to in‐situ Si3N4 capping (<5 nm). We show here that simultaneous optimization of GaN growth and of device passivation results in a drastic reduction of buffer and surface traps. This has impact onto device performance, assessed by pulse IV measurements. Drain lag is correlated with the appearance of deep defect‐related peaks in photoluminescence spectra (6 K), and completely eliminated by tuning growth temperature. Gate formation (Ni/Au) onto MOVPE‐grown Si3N4, followed by cleaning and PECVD ex‐situ passivation, leads to very low gate current dispersion, associated to gate leakage current in μA/mm range. Both dc and pulsed characteristics show a current density in the order of 0.8‐1 A/mm, whereas maximal transconductance is 250 mS/mm (Lg = 1 μm). (© 2008 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)