Correlation of IP3 in a phemt with the third derivative of Ids wrt Vgs, or Gm3 is addressed.A nonlinear large‐signal Phemt model was developed based on the fitting RF Gm characteristics as well as IV/CV. Systematic extraction approach is described. In extraction, RF Gm fitting minimizes the errors between modelled and measured Gm3. Scale‐ability in terms of DC, S‐parameters, and IP3 is demonstrated. For large‐size devices, other factors, such as RF‐Gds characteristics, are also important. Modelling of accurate noise response is realized with linear lookup table data based noise model and nonlinear voltage/current sampler. The over‐all model includes also physics‐based dynamic thermal effect and scaleable measurement‐based noise model that makes it the most comprehensive and most practical in industry. © 2010 Wiley Periodicals, Inc. Microwave Opt Technol Lett 52: 604–611, 2010; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/mop.24995