High quality SiO2 layers were successfully deposited onto AlGaN by photo‐chemical vapor deposition (photo‐CVD) using D2 lamp as the excitation source at room temperature. The resulting interface state density was only 8.86 × 1011 cm–2 eV–1. With a 2 µm gate, it was found that maximum drain–source current, maximum transconductance (gm,max) and gate voltage swing (GVS) of the fabricated nitride‐based metal–oxide–semiconductor heterostructure field effect transistors (MOS‐HFETs) were 225 mA/mm, 33 mS/mm and 6.5 V, respectively. Compared with metal‐semiconductor HFETs (MES‐HFETs), it was found that noise power density of MOS‐HFETs was lower and presented pure 1/f noise with smaller trapping effects. (© 2006 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)